Update: Insurance news in Australia

It’s important to keep up with the latest news within the Australian insurance industry. The latest news coming to light is that of the NSW storms just recently. The estimated insurance loss of this is valued at $244-million from over 34,950 claims coming in. A hail storm has followed this storm adding to the claims and calls to emergency.

These claims will in fact test the policies which many Sydney-siders are relying on to cover their homes, businesses and general property. Further storms are expected to come shortly after also. Repairs for current damage is estimated to take months to get back to normal.

This storm has caused widespread flowing, power cuts to over 200,000 homes, beach erosion, and due to 14.9m waves has also prevented ships from entering Sydney.

The State Emergency Service volunteers responded to over 19,000 calls, with about 1500 volunteers available over that time.

What does this mean for insurance?

IAG has received over 15,000 claims for help under brands NRMA, CGU, Lumley, WFI, and Coles.

There was much damage to person property including fallen trees, flooding, and collapsed roofs. Flooding definitions can vary amongst insurers therefore some claimants may be faced with exclusions. Insurers are still working on a way to standardise the definition of flooding. For example Coles insurance requires that the water enters your property through an opening. So if any water comes under the door, the client will not be covered.

Other potential areas for exclusion include the clean-up of debris. Things such as fallen trees or storm surge may not be covered under all policies. However most will have cover to remove trees if it is affecting the building or contents and if it needs to be removed to fix the damage caused and covered by the policy.

Flooding insurance news

Insurers will be sending out assessors to help with the claims processing following the storm. ICA has said that claims were mostly for home and contents, with light damage caused by rain and wind, and some vehicle and storm water damage. The biggest issue being raised is for flooding and will most policies cover this.

Many insurers automatically cover flooding in their policies. And many of these have taken the standard definition for flooding. However the recent storms are set to test this definition. Many people who are at a high risk of flood damage often do not take out the cover as it’s too expensive, or they obtain a policy which is cheap and doesn’t cover any severe flooding.

QBE received over 1600 claims after the storms. And Insurance Council of Australia CEO Rob Whelan has stated that assessors will put those suffering the worst damage ahead of the line.

If you want to make sure that you are properly covered and up to date with insurance news, contact All Trades Cover today for help with finding the best policy. We stay on top of the latest news and have specific business policies to protect you thoroughly. Check out our online quoter now.

Summary

Keep up with the latest news happening in insurance here. The recent NSW storms have totalled millions of dollars in claims and just under 35,000 individual claims. Find out how the insurance industry will deal with these and what it means for your insurance.

AllTradescover is Australia's fastest growing trade insurance provider offering low cost tradesman liability insurance and public liability insurance packages. Request a quote today.