How to protect yourself from disaster chasers after ex-Tropical Cyclone Alfred

A fortnight has passed since ex-Tropical Cyclone Alfred made landfall, and communities across South East Queensland and northern New South Wales are in recovery and rebuild mode, coming together, cleaning up and counting the cost.

Aerial shot of customer property damage with NRMA tarp – Tallai, QLD, March 12.

In the aftermath of a natural disaster, hundreds of home and vehicle owners are desperate to repair or replace their damaged property and to get back on their feet as fast as they can. Sadly, it is at this vulnerable time when the threat of a different nature emerges to disrupt the recovery and rebuild effort: disaster chasers.

“It’s a sad reality that disaster chasers mobilise quickly after an extreme weather event like ex-Tropical Cyclone Alfred and seek to take advantage of already distressed and vulnerable people,” says NRMA Insurance CEO, Julie Batch.

NRMA Insurance believes that understanding the risks posed by disaster chasers and knowing how best to protect yourself from being exploited is critical for residents in affected communities.

Julie Batch, CEO of NRMA Insurance and Nick Hawkins, CEO of IAG in Robina, Queensland.

“We know that these highly organised operations market themselves to victims by posing as full-service insurance claims managers,” says Ms Batch. “They deliberately exploit vulnerable customers and promise to fast-track their home and vehicle insurance claims and to deliver greatly inflated insurance payments.”

Andrew Hall, CEO of the Insurance Council of Australia (ICA), has warned about the increasing volume and sophistication of disaster chasers in Australia.

“Unfortunately, ongoing supply chain and labour issues in the building sector can lead to delays in post-extreme weather event repairs and rebuilds,” says Mr Hall.

“This creates an opportunity for unscrupulous actors to exploit people most in need of support with a guarantee of quick-fix cleanup, inspections and repairs.”

Disaster chasers prey on vulnerable people by turning up at their weather-damaged homes unsolicited to offer low-cost and immediate repairs, and employ high-pressure sales tactics to make customers sign up.

Completed property repair work is often substandard, and in several cases, the disaster chasers pocket a payment from the customers upfront and then disappear without completing the works. The substandard work of these companies is not covered by any guarantees provided by NRMA Insurance, meaning customers may experience difficulties obtaining insurance in the future.

Predatory practices aim to gain access to people’s personal information and bank account details. In some instances, disaster chasers fabricate repair documents and misrepresent bank accounts to redirect payments to accounts under their control.

The insurance industry, Legal Aid Queensland and Financial Counselling Australia share these concerns about harm to insurance customers caused by these disaster chaser companies who seek to charge for the free service of simply managing your insurance claim.

Paul Holmes of Legal Aid Queensland says too many people fall victim to disaster chasers charging a management fee of up to 20 per cent of an insurance claim to access free insurance complaints processes and services.

“All of the insurance complaints processes including AFCA are free for you to access,” he advises.

“Legal Aid Queensland, Community Legal Centres and financial counsellors stand ready to provide free advice and assistance for people who need help with or have concerns about their insurance claim.”

Protecting yourself from disaster chasers

Tips to identify a scam:

1. Surprise insurer visit: NRMA Insurance will never send an assessor or emergency-repairs team to your home without first arranging it with you after you have made a claim.
2. Payment requests: A builder or tradesperson sent by your insurer will never ask you to provide payment to cover your excess, or any work done.
3. Failing to provide credentials: Always ask to check the credentials of any tradesperson who comes to your home on behalf of your insurer. Call your insurance company if you have any doubts or suspicions.

NRMA Assessor at customer property - Stokers Sliding, NSW, on March 9.

NRMA Insurance urges all Australians to remain vigilant to the threat posed by disaster chasers and scammers who seek to take advantage of vulnerable people in communities affected by extreme weather events and natural disasters.

“You can lodge your claim with NRMA Insurance online or over the phone at a Recovery Centre or via one of our mobile service vehicles.”

“If you have concerns about the authenticity of any trades people, assessors or builders claiming to act on behalf of NRMA Insurance, please contact us immediately.”

“Protecting you, your family and your property is our priority,” said Ms Batch.

For more information on protecting yourself from disaster chasers, visit the NRMA Insurance website.