Tips for filing flood and storm insurance claims

Published on 28 April 2021

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TIP 1: Starting your insurance claim

How to begin a claim for flood damage to your home, car or other property.

  • Check whether you have home building and contents insurance and car insurance. Contact your insurer to register a claim as soon as possible!
  • If you’ve lost your policy documents, your insurer can verify your cover.
  • If you don’t recall the name of your insurer, contact: Insurance Council of Australia’s Disaster Hotline on 1800 734 621

Free legal advice about insurance claims and disputes from Insurance Law Service by phone at 1300 663 464 or email at insurancelaw.org.au

Emergency accommodation

  • Check if your policy covers emergency accommodation and how long for.

TIP 2: Financial hardship, mortgages and loans

You are legally obliged to continue meeting your mortgage repayments, even if your home has been destroyed or damaged by flood.

  • Not paying your loan could lead to additional interest and enforcement fees legal action. Contact your lender to ask for hardship assistance. For advice, contact: National Debt Helpline on 1800 007 007
  • If you have other loans you cannot pay contact your lender for a hardship assistance.
  • If you’re in need of urgent financial assistance, your insurer is obliged to fast track your claim and advance a payment, if appropriate.

TIP 3: Taking stock of the damage

Write a detailed account and take photos of the damage to your property.

  • Take care in the language you use to describe the damage to your property.
  • “Flood” has a technical and an everyday meaning. Check your policy to see how flood is defined.
  • Detail when you saw water entering, the colour and direction it came from. Did wind or rain create holes that enabled water to enter?

TIP 4: Cleaning up

It can take a while for assessors to inspect the damage to your property. It’s important to document and photograph all your items. You may not be covered if you dispose of items before they’re assessed, unless you can prove the cause and extent of the damage.

  • Ask your insurer’s permission if you think you need to dispose of something. This might include carpets because of risk of mould.
  • Take reasonable steps to minimise your losses. Put a tarp over your roof or move household items under shelter. Document this and take photos. Insurers can reject claims because of subsequent damage.
  • Get advice early if there’s ongoing damage occurring, and your insurer isn’t doing anything about it.

TIP 5: Working with your insurer

There’s lots of claims happening. Insurers should be triggering their catastrophe response and dealing with you with empathy and respect.

  • How and when you got your policy might be relevant in any future disputes with your insurer. Did you arrange it yourself or through a broker or other intermediary? Did you receive renewal notices?
  • Take notes when you contact your insurer, who you speak to and what is said.
  • Request copies of decisions in writing and evidence the insurer relies on.
  • Also request copies of your policy schedule, product disclosure statement and renewal notices to be sent.

TIP 6: Claims management services

Insurance claims can be daunting. Policies can be complex and full of jargon. But there’s risks and alternatives to insurance claims management services and alternatives exist.

  • There are free services and resources to inform consumers of their rights.
  • Claims management services typically work for a percentage of any cash settlement offered by an insurer.
  • Ask how much it will cost, ask for independent references and read any contract thoroughly before agreeing to it.

For more information contact:

Insurance Law Service 1300 663 464

National Debt Helpline 1800 844 949

Mob Strong Debt Help 1800 808 488 (Aboriginal or Torres Strait Islanders)

www.financialrights.org.au