The Insurance Council of Australia (ICA) is warning residents to be wary of disaster chasers who offer quick-fix clean-up, repairs and inspections but wants cash upfront for shoddy work.
As of Wednesday, the ICA says insurers received more than 27,800 claims from the hailstorms that swept south-east Queensland on Sunday and Monday with more due to be lodged.
The council say some disaster chasers pressure homeowners to sign a contract on the spot for future work and may promise their insurer will pay.
According to the ICA, this will leave the homeowner liable to pay a commission or inflated repair bills not covered by their policy as insurers will only pay for approved work covered by a policy.
It says residents who believe they were approached by, or signed with, a disaster chaser should talk to their insurer.
INSURANCE CLAIMS
ICA chief executive officer Andrew Hall says they encourage any policyholder who suffered storm damage to lodge a claim with their insurer even if they don’t know the full extent of the damage.
“It’s also important to remain on alert for disaster chasers, particularly with more storms predicted for the remainder of the week,” he says.
He says the ICA has set up an industry-wide taskforce to help manage claims and that insurers are starting to process claims.
ICA Deputy CEO Kylie Macfarlane confirmed to journalists that all 140 postcodes in south-east Queensland have been affected by the storms.
He also repeated the warning about disaster chasers.
“Your insurer will not send someone to your house unless they have told you that they are doing that. If you’re unsure, call your insurer,” he says.
“Make sure you look at the qualifications of the people who door-knocked or come into your yard. Also, don’t sign anything.”
Macfarlane also repeats the point that any work done by people not sent by your insurer won’t be covered by your insurance policy.
“Always be on the lookout for disaster chasers.”
ICA tips for disaster chasers
An insurer will not send a tradie or builder for repair work on your home without notifying you and providing you with details first.
Speak to your insurer before agreeing to any repairs or rebuilding work to make sure they will cover the work.
A tradie or builder working for your insurer will not ask you for payment.
If in doubt, ask for identification such as a builder’s licence or driver’s licence, and ring your insurer to check.
If you sign a contract with a disaster chaser, you have a statutory 10-day cooling-off period. Your insurer can help you end that. For more, click here.
On Tuesday, the ICA declared an Insurance Catastrophe to ramp up their response by triaging the worst claims and sending staff to help agencies and individuals.
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