Insurers promise to prioritise fire claims

The deadly bushfires raging across northern NSW have been declared a catastrophe by the Insurance Council of Australia.

Significant damage to homes and property after fires tore through the Rappville area. Picture: Marc Stapelberg

The Insurance Council of Australia has declared the ferocious bushfires raging across northeast NSW a catastrophe after hundreds of homes and thousands of hectares of bushland were ravaged by the blazes.

Insurance Council head of risk and operations Karl Sullivan said the group had elevated the status of the disaster to ensure bushfire claims were prioritised.

“The ‘catastrophe’ declaration means claims from these bushfires will be prioritised by all insurers, and they will be focusing on reducing the immense emotional and ­financial stress experienced by residents and businesses,” Mr Sullivan said.

“Insurers will be poised to move into these communities once emergency services declare it safe to do so. I urge property owners to do the same — do not return to your home until you are told it is safe. These fires are still raging in many areas and have already caused the loss of life. The safety of people is paramount.”

On Sunday morning, 72 fires were burning across NSW, 36 of which were not under control.

Eleven fires remain at a watch-and-act level.

NSW Rural Fire Service Commissioner Shane Fitzsimmons said on Sunday assessment teams were bracing themselves for “considerable losses”.

“There are communities and fire grounds where we are expecting to tally up considerable losses of homes and other properties,” he said. “A number of our own fire stations have been destroyed.”

At least 150 homes have been destroyed by the fires, although this number is likely to climb as detailed assessments begin.

Mr Fitzsimmons said other important community assets had also been lost in the fires.

“We’re talking about schools being destroyed, we’re talking about community halls, bridges, power poles,” he said.

“All of those sorts of things — they get consumed in the path of a volatile, fast-moving fire. The more forensic process of getting in and doing the detailed assessments will come over coming days.”

Mr Sullivan encouraged affected property owners to contact their insurers as soon as possible to allow the claims process to start. He said many policies provided emergency accommodation for affected homeowners.

The ICA has begun mobilising teams of assessors and claims specialists and activated a disaster hotline to assist policyholders if they are uncertain of their insurance details, or have general inquiries about the claims process.

Insurance Council disaster-recovery specialists have also been rolled out to support affected property owners and community groups, while an industry taskforce will identify and address any issues that arise

This is the fourth time the ICA has declared a bushfire catastrophe this year. In October, the Rappville bushfire resulted in losses estimated at $25m. In September, insurers paid out $20m for 300 claims from fires in northern NSW and southeast Queensland. In March, the Bunyip bushfires in eastern Victoria caused losses of $31.9m, with 432 claims lodged.

In February, insurers paid out almost $1.3bn for water damage from a monsoonal downpour that hit Townsville and its surrounds.