Every time a cyclone warning is issued, our phones in the area ring hot – but, by then, it’s too late to insure against the incoming threat.
The Australian tropical cyclone season runs from 1 November to 30 April, with around eleven tropical cyclones each season. Homeowners, renters and businesses need to assess their insurance before the potential big one is on its way.
That’s because you cannot take out a new policy to insure against a cyclone that has already been named, and some policies will not cover loss from storms, cyclones or floods that occur within 72 hours of taking out the cover.
Underinsurance of both buildings and contents is common in cyclone-prone areas.
Many people forget to re-evaluate the sum insured as they acquire more possessions – and some forget to include items such as clothing, shoes, cutlery, crockery, liquor, toys, linen, outdoor furniture, garden equipment and tools, all of which cost money to replace.
Other people underestimate rebuilding costs and renters often mistakenly think the landlord’s insurance will also cover their possessions.
It can be frustrating for individuals trying to find insurers who will cover homes located above the 26th parallel – but a call to your local broker can eliminate the need for a ring-around.
If you live in an area at risk of cyclones, and would like to discuss your options, contact your local EBM Insurance Broker.
Our advice about insurance is provided for your general information and does not take into account your individual needs. You should read the Product Disclosure Statement and Policy Wording prior to making a decision, these can be obtained directly from EBM.