Natural Disasters and Your Home
Fisk & Nagle | 25th October, 2011
Having your home damaged or destroyed in a natural disaster is devastating. While these events are usually impossible to predict, one thing you can control is your insurance. If you own Cooma real estate, this article is for you!
If you live in an area that is prone to storms, floods or bushfires, home and contents insurance is essential. In the event of a natural disaster, the insurer will help pay for repairs and other expenses, making it easier for you to get back on your feet.
Storm Insurance:
Tip- Find a policy that specifically covers the type of flooding your area is prone to.
While insurers generally cover storm damage, the level of cover varies. Unfortunately, some people find that their claims will not be paid and end up paying the repair costs themselves. Flood cover is not offered in most home and contents insurance policies.
If you’re not happy with your current level of cover, talk to your insurer and see what they can offer. You can also shop around for a policy that’s better suited to your needs.
Floods and Cyclones:
January and February 2011 saw many parts of Australia impacted by flooding and Cyclone Yasi. A report by the Commonwealth Bank of Australia found that 4 in 10 Australians believed they were directly or indirectly affected.
If you have been affected by a flood or cyclone and want to know what you should do about home insurance, you should:
Contact your insurer to lodge a claim. Do this before you start any major repairs.
Take photos before cleaning up and make a list of everything that has been damaged to assist in the claim process
Consider removing water and mud-damaged possessions. Carpets and soft furnishings can be removed from the building as part of the clean up.
Don’t worry if your insurance documents have been lost or damaged due to the flood as insurance companies keep records electronically. You can ask your insurer to send you a copy of your policy.
Bushfire insurance:
Wherever you live, your home insurance needs to be enough to cover the costs of rebuilding your home. This is particularly important if you live in an area prone to bushfires.
Risk of underinsurance:
Many people do not have enough insurance cover on their home. This can be extremely costly – and stressful – if you lose your home.
Increasing your insurance cover may not cost very much, and if you shop around you may even be able to get more cover for a lower price.
Australia is a great place to live but it is also a harsh environment. Taking some time to do your insurance homework will help ensure maximum protection for your home.
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