As our northern Queensland friends and family start the long road to recovery, the Insurance Council of Australia warns that the clean up could cost billions.
More than 90 per cent of north Queenslanders have some kind of insurance coverage. But across Australia, experts say we’re chronically underinsured for natural disasters.
So what natural disaster insurance should you consider for your home?
Know Risk says you should look at the following natural disasters when selecting a home and contents policy:
- Floods – a universal definition of flooding now applies in insurance policies: The covering of normally dry land by water that has escaped or been released from the normal confines of any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or any reservoir, canal or dam.
- Earthquakes — although Australia doesn’t have a high incidence of destructive earthquakes, there have been enough, four to be exact, in the last 40 years to make it worth considering as a key point of coverage in any potential policy.
- Cyclones — particularly for those of us in Queensland, the Northern Territory and Western Australia.
- Bushfires — there aren’t many parts of the country that are immune to the risk of bushfires, and we have seen multiple significant losses, particularly in recent years as the climate appears to be increasing in dryness and warmth, both of which are prime conditions for bushfires.
- Hail — severe hailstorms have become an increasing threat in recent years, and they have the potential to cause significant damage.
- Storms — as with bushfires, severe storms have the potential to cause widespread damage across most parts of Australia.