Australians are no stranger to natural disasters, including storms and floods, with large devastation recently occurring in Queensland and New South Wales due to heavy rain, storms and subsequent floods.
Following this large weather event across Eastern Australia, the Insurance Council of Australia has declared the event a catastrophe and the Australian Government has declared parts of New South Wales a state of emergency.
Declaring this event as a catastrophe means that priority will be given to those worst affected when they have lodged a claim with their insurance company. If your customers are concerned, or you are impacted yourself, it’s important to understand what assistance is available in your area.
What does a catastrophe declaration mean?
- Claims from affected policyholders are given priority by insurers.
- Claims will be triaged to direct urgent assistance to the worst-affected property owners.
- ICA disaster response specialists are mobilised to the affected location to work with government agencies, emergency services, local agencies and affected policyholders.
- Insurers mobilise their disaster response specialists to assist their affected customers with claims and assessments as soon as emergency services say it is safe to do so.
- An insurance industry taskforce is established to identify and address insurance related issues arising from the natural disaster.
What financial assistance is available?
Both State (QLD and NSW) and Federal Government have announced a number of different support packages for individuals, businesses and local councils based on your location, as they grapple with the aftermath of this unprecedented disaster. These financial support packages are aimed at supporting those groups in the recovery process.
This is what may be available to your clients or you directly (if impacted):
Disaster relief payments
- The Australian Federal Government: Disaster relief payments available through Services Australia. Phone: 1800 22 66.
- Queensland have released the Emergency Hardship Assistance Grant (only available for seven days after activated in an affected area).
- NSW is offering a Disaster Relief Grant for low-income earners who do not have insurance. Phone: 13 77 88.
Childcare assistance
- There may be help for those with approved childcare which can be found by reading Additional Child Care Subsidy Temporary Financial Hardship.
Bank assistance to delay payments
- Some banks are supporting their customers with emergency assistance through the Australian Banking Association website.
For financial struggles and assistance
- For those seeking guidance with financial issues, they can call the National Debt helpline on phone 1800 007 007 for confidential counselling and resources.
For disputes against a bank or insurer
- The Australian Financial Complaints Authority can help with disputes between customers and banks or insurers
Do you require urgent financial assistance?
Under the General Insurance Code of Practice, impacted people requiring urgent financial assistance should contact their insurer who may be able to fast track your claim and make an advance payment within five business days of you demonstrating your urgent financial need. Any advance payment may be deducted from the total value of your claim.
If your claim has been finalised within one month of the catastrophe, your insurer must give you 12 months from the finalisation date to ask for a review of your claim (for instance, if you think the insurer has not accurately assessed your loss), even if you have signed a release.
Considerations for when you return
Making sure that it is safe to return to your property or business is the first step and you can stay up to date with evacuation orders and road closures via https://www.ses.nsw.gov.au/ before you consider returning home or to your business. Further to the physical destruction caused by the east coast floods, there is also a significant mental and psychological impact. The Federal Government therefore, have released $25 million dollars of additional funding for mental health services.
Additional support available
For counselling or mental health support:
- Contact Lifeline to talk to a professional counsellor about any mental health concerns, or those you have for a loved one. Call the 24/7 crisis support helpline on 13 11 14 or text or message them online here.
- Reach out to Beyond Blue 24/7. You can reach them at 1300 22 4636, or visit them online to direct message or email a counsellor.
- Young Australians (teenagers) can contact Headspace with mental health concerns – call them on 1800 650 890 or contact them online here.
- The Lifeline Community Recovery team also visit communities to provide counselling and psychological first aid in the weeks and months after major weather events. More information is available here.
What can you do when returning to your property?
The Insurance Council of Australia (ICA) have published a set of guidelines for individuals and businesses impacted by the severe weather event.
Advice includes:
- Safety is the priority - don’t do anything that puts anyone at risk.
- Only return to your property when emergency services give the go ahead.
- If water has entered the property, don't turn on your electricity until it has been inspected by an electrician.
- Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process.
- Don’t worry if you can’t find your insurance papers. Insurers have electronic records and need only your name and address.
- Property owners who have sustained roof damage should advise their insurer, your insurer will arrange emergency works to minimise any hazards and prevent further damage. This can include isolating damaged solar panels or electrical circuits and installing a roof tarp.
Starting the clean-up
- You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim.
- Keep samples of materials and fabrics to show your insurance assessor.
- Remove water or mud-damaged materials from your property that might pose a health risk, such as saturated carpets and soft furnishings.
- Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible.
- Store damaged or destroyed items somewhere safe where they do not pose a health risk if it is possible.
- Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy.
- Do not throw away goods that could be salvaged or repaired.
Consumers beware:
Be wary of flood recovery scams or unlicensed trades. Remember, if trades behave in an intimidating or threatening manner to try to get a quote accepted, they should be asked to leave. If they refuse, contact the Police in your local area.
How can Gallagher Bassett advise insurers during this time?
Gallagher Bassett has been supporting insurers in Australia since the 1974 floods, with expert teams across the country and globally. The company provides claims management services under both Catastrophe and Crisis and is the only Australian TPA with the size, infrastructure and scalability to provide Catastrophe Claims Management services for large-scale catastrophic events. Want to read more about our Catastrophe Claims Management services, please follow this link or contact us today.
