Now that the flood waters are receding & power is back on, the big clean-up begins. However, for many who have lost everything, and even for those who are insured, more uncertainty lies ahead.
Stories abound of stranded families who have lost their entire homes during the recent floods and are living in ‘limbo’ not knowing if or when they can receive insurance payouts. For example, a flood victim, Sarah Smith, who’s fully insured with Alliance and has a young family, is having to pay for an AirBnB in Kedron to keep a roof over her family; does not know where they will be in 2 weeks and says that she can’t even get a date from her insurer as to when her property will be assessed.
Those who think they are fortunate enough to have insurance and looking to make a claim may find the process could be delayed for months or even years!
The Insurance Council of Australia (ICA) reported 107,844 claims have been lodged over the floods in NSW and south-east Queensland. It’s a staggering about of claims that need to be processed but the main delay for assessment of claims will come down to the owner being able to justify to the insurance assessors what has been damaged or lost due to the floods.
It becomes very difficult for assessors if, by the time they arrive onsite, the damaged items have already been removed or may have been thrown into the skip bin by the’ mud army’. The question is, how can they accurately assess the specific goods damaged and estimate the extent of damage for processing the claims if the owner doesn’t know what has been thrown out?
The solution is to be prepared and to maintain accurate records of your property and its contents. By creating an inventory of your household goods and having them stored digitally in one place, that is accessible 24/7 then it becomes much easier for insured owners to prove to assessors what was there before. By taking the time to upload photos, including the serial numbers of appliances, your insurance policies, warranties and the like into your digital property logbook - you can help expedite the assessment and processing of future claims. This would bring more certainty and peace of mind to those insured and helps protect your biggest asset for when the next disaster hits.
The sad reality is that there will likely be more floods and natural disasters to come. The science is clear that these ‘once-in-a-generation catastrophes like floods, cyclones, earthquakes and bushfires will happen with greater frequency & intensity. This has come true for places like Lismore in northern New South Wales, which has had three flood events in the last five years.
For those who are returning to their flood damaged homes and tackling the confronting task of cleaning up, repairing and replacing damaged goods, there is a helpful checklist that has been issued by The Insurance Council of Australia: What to do when you return to your property after a flood. Here is the extract:
When to return and what to do first
Safety is the priority - don’t do anything that puts anyone at risk.
Only return to your property when emergency services give the go ahead.
If water has entered the property, don't turn on your electricity until it has been inspected by an electrician.
Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process.
Don’t worry if you can’t find your insurance papers. Insurers have electronic records and need only your name and address.
Property owners who have sustained roof damage should advise their insurer, your insurer will arrange emergency works to minimise any hazards and prevent further damage. This can include isolating damaged solar panels or electrical circuits and installing a roof tarp.
Starting the clean-up
You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim.
Keep samples of materials and fabrics to show your insurance assessor.
Remove water or mud-damaged materials from your property that might pose a health risk, such as saturated carpets and soft furnishings.
Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible.
Store damaged or destroyed items somewhere safe where they do not pose a health risk.
Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy.
Do not throw away goods that could be salvaged or repaired.
The recovery will not only be a financially challenging time but also an emotionally difficult one that is worsened by the uncertainty of not knowing whether or not people will receive pay-outs or even when.