The Australian Securities & Investments Commission (ASIC) has provided practical guidance for Far North Queensland (FNQ) communities affected by ex-Tropical Cyclone Jasper.
On Dec. 18, the Insurance Council of Australia (ICA) declared a “significant event” for the impacted regions. On Jan. 3, it extended the declaration in response to the widespread impact of the severe weather conditions.
ASIC Commissioner Alan Kirkland urged residents facing devastation to prioritise their safety as FNQ recovers from the impacts of the severe weather conditions.
“This is a difficult time for many Australians across Far North Queensland who are facing devastation, uncertainty, and heartbreak. The road to recovery for an event such as this will be long, and as people begin to return home and the clean-up commences, it's important to know the first steps to take,” he said.
ASIC advised residents impacted by floods to adhere to the directives of local authorities and emergency services, returning to their properties only when deemed safe.
Upon returning, assessing the damage and documenting it through photos or videos are essential for insurance purposes. Removal of spoiled food and damaged goods posing health risks should also be prioritised.
Before initiating any repairs, ASIC recommended consulting with insurers and keeping receipts for essential replacements such as white goods or bedding. In cases where water has entered the property, electricity should not be restored until inspected by an electrician. For structural concerns, entry should only be permitted after assessment by a qualified professional, with insurers available for assistance in arranging these services.
To streamline the claims process, ASIC encouraged affected individuals to contact their insurer or broker promptly, utilising phone or online options when possible. However, claims assessment may experience delays due to accessibility challenges and the high volume of claims. Continuous communication with the insurer and seeking clarification on any uncertainties is advised.
In instances where insurance details are unclear, referencing bank statements for premium payments or contacting the ICA's disaster insurance hotline (1800 734 621) is recommended.
ASIC emphasised the availability of financial assistance, urging affected individuals to engage with their insurers for emergency accommodation, financial support, and additional services. Those facing financial difficulties should promptly contact their lenders to explore available assistance options.
Vigilance against scams is crucial in the aftermath of natural disasters, according to ASIC. The reminder aligns with the ICA's recent warning on the presence of “disaster chasers” in affected communities following the severe storms.
“Be wary of anyone who asks for payment up-front or who asks you to sign a contract immediately. Do not agree to sign anything that prevents you from dealing directly with your insurer or broker. If in doubt, contact your insurer directly using the phone number on your policy documents or on their main website,” Kirkland said.
As insurance claims near completion, insurers may offer either a cash settlement or manage the repairs.
“If you're given a choice, take time to consider which option is more appropriate for you, including whether a cash settlement will be sufficient to make the repairs. Your insurer might be in a better position to find and organise tradespeople, especially following a natural disaster,” Kirkland said.
