Disaster Legal Helpline
Disaster Legal Helpline
Last updated: July 2020
The information set out on this page is intended as an introduction only and should not be relied on in place of legal advice. Your entitlements will depend on your circumstances and the terms of your insurance policy.
If your home or property has been damaged or destroyed in a disaster, it is important to lodge your insurance claim as soon as you can. Before you lodge a claim, you need to understand what you are covered for under your insurance policy. Read the information on this page carefully and seek help if you need to. You need to understand any information your insurer sends you. Do not sign any documents until you understand what they mean.
The ‘Where to get help’ section at the end of this page contains contact information for support agencies that can provide you with information and, in some cases, legal advice to help you with your insurance claim. If you are unsure about any of the information on this page or need further assistance, you should contact these agencies.
First steps you can take after a disaster and to prepare to lodge your insurance claim (when it is safe to do so):
Your home insurance policy (also referred to as property insurance or home building insurance) can cover you for damage to your home including:
There are different types of home insurance policies. Most policies cover bushfires, storms and cyclones, but not all cover floods. Your contents insurance policy can cover you for loss of, or damage, to your possessions. You may have both home and contents insurance.
Most home insurance policies are for a ‘sum insured’ amount, which means you are insured up to a specific dollar amount. Usually, you will get no more than that amount when you claim. Sum insured policies will reimburse you for the value of your possessions in the condition they were in just before they were damaged or destroyed.
Check your policy carefully to see if any additional cover is provided, as some sum insured policies also cover items like emergency accommodation, cleaning up a site and professional fees for architects, accountants and planners. However, it may be that the total sum insured amount is to cover these extra costs as well as the replacement of the property. If you are unsure what your policy covers, you should contact one of the support agencies listed in the ‘Where to get help’ section at the end of this page.
Some home insurance policies are not for an agreed amount but are to replace any building/s. This is referred to as a ‘total replacement’ or ‘complete replacement’ policy. Total replacement cover pays out the full amount needed to replace damaged property with a new property, without taking into account the depreciated (reduced) value of the property over time. Usually, total replacement policies give the insurer the option to either:
Total replacement policies offer better protection against underinsurance (see below) than sum insured policies, but they are usually more expensive.
Contents insurance will cover the cost to repair or replace household possessions and furnishings, such as furniture, appliances and electronics. This includes items belonging to you and to family members who live with you. It does not cover items that are permanently attached to the building. Some policies may cover items such as clothing, jewellery and sporting equipment. Or you may have to purchase additional cover for these kinds of items, or have a limit on how much is covered. For example, a policy may only cover jewellery and watches up to a limit of $2,500. Different policies cover different items and limits, so check your policy carefully. If you are unsure what you are covered for, contact one of the support agencies listed in the ‘Where to get help’ section at the end of this page.
Contents insurance can be purchased by both home owners and tenants. If you are a tenant, your possessions are not covered by your landlord’s building insurance policies.
This will depend on your policy. Some policies will pay for costs needed to make the building comply with current home building regulations and laws. These insurers may cover costs in addition to your regular cover. Check your policy carefully and, if you are not sure, contact one of the support agencies listed in the ‘Where to get help’ section at the end of this page.
When you make a claim, you are notifying your insurer about the loss or damage that you believe is covered by your policy. Your insurer will review your claim and, if it is accepted, work out the value of it and provide the benefit or payout.
Different insurers have slightly different processes, but the following steps will help guide you in lodging your claim:
If your claim was finalised and you think the assessment of your loss was wrong you have options:
You may not agree with your insurer’s decision. Maybe the insurer rejected your claim altogether, or perhaps you think your settlement is too low. Maybe you are unhappy with how your insurer is handling your claim and feel there have been unnecessary delays. In these situations, you may wish to make a complaint.
If you do not agree with your insurer’s decision, there are two complaints processes:
This involves making a complaint to your insurer directly. Your insurer must provide you with information on its internal dispute resolution process, including details of how to lodge a complaint and how they will deal with your complaint. This information should be included in your insurer’s Product Disclosure Statement (PDS), and may also be set out on your insurer’s website. Your insurer will have someone review your complaint and write to you to let you know the outcome or to request additional information. Your insurer has 45 calendar days to make a decision about your complaint. If you are still unhappy with the outcome, your insurer will provide you with information about other complaint options available to you, including external dispute resolution.
Your insurer is required to be part of a free and independent external dispute resolution scheme managed by the Australian Financial Complaints Authority (AFCA). AFCA can mediate between you and your insurer. Where mediation is unsuccessful, AFCA can make decisions (called determinations) that the insurer must comply with. You should contact AFCA as soon as possible if you are not satisfied with your insurer’s internal dispute resolution decision.
You must request an internal review first. If you are still unhappy with your insurer’s decision, you should take your claim to AFCA. See contact details in the ‘Where to get help’ section below.
Yes, if you can prove to your insurer that you urgently need the money you are entitled to under your insurance policy (as a result of the disaster). Your insurer must do either or both of the following:
Public liability insurance is usually included in your home and/or contents insurance policy. Usually, it will cover an owner’s liability for injury or death to a person that occurs on your property, because of negligence (being careless). It may also cover your reasonable legal costs. You can buy public liability insurance if you are not already covered.
If you do not pay a premium instalment by the due date, your insurer has the right to cancel your policy. They must first provide you with a written notice about your non-payment at least 14 calendar days before any cancellation. When you get this notice, you can make the late payment to avoid cancellation. If you do not pay, your insurer will send you another notice informing you that your policy is being cancelled. If your insurer has validly cancelled your policy due to non-payment, unfortunately it is possible that the insurer may deny your claim after a disaster.
Most insurance policies run for 12 months. Your insurer must tell you in writing that your policy is going to end. This will usually be 14 days before, but information about your policy will be on your Product Disclosure Statement (PDS). If your insurer did not give you notice as required by your PDS, your policy may not be able to lapse and you will still be covered. Check your PDS carefully and contact one of the support agencies listed in the ‘Where to get help’ section at the end of this page if you need assistance.
Being underinsured means the value of your home and contents in your insurance policy is not enough to pay to replace or repair your home. This can mean that you end up paying the difference.
If your property is underinsured and you cannot afford to rebuild, and your sum insured amount was decided on or recommended by your insurer, mortgage provider or other financial institution, you may be able to lodge a complaint. That person or institution may have given you inappropriate advice. Contact one of the support agencies listed in the ‘Where to get help’ section at the end of this page.
If you cannot afford to rebuild and you are left with a shortfall (gap) between the value of your property and the amount on your mortgage, you should contact a financial counsellor.
If your policy lapsed or was cancelled recently, you may not be able to make a claim. If you were a long-term customer of your insurer, it is worth contacting them to check if there is anything they can do to help you. You could also contact one of the support agencies listed in the ‘Where to get help’ section at the end of this page about your situation.
Local governments have set extra requirements on rebuilding in areas affected by bushfires. If you choose to replace your policy, this will cover the additional cost to rebuild. You will not be underinsured if you were to lose your house in future fires. But replacement policies are hard to find.
If you choose a ‘sum insured’ policy for a specific amount of money, it is important that you know the true cost of rebuilding your property to make sure you are covered. Otherwise, your policy may not cover rebuilding if you were to lose your house again.
Some tips to work out the true cost of rebuilding or replacing your property:
Insurance claims management companies can help you calculate your insurance claim for a fee. If you are thinking about using a claims management company, first contact one of the support agencies listed in the ‘Where to get help’ section at the end of this page for more information.
Most people are covered for some life insurance cover in their superannuation policy. If you have lost a family member in a disaster, contact their superannuation fund to make a claim to release their superannuation and life insurance.
While it is rare to get superannuation early, you may be able to get it on compassionate grounds or if you are on eligible income support from Centrelink and have financial hardship. The superannuation fund may also include cover for total and permanent disability, where you cannot continue working because of an injury or illness. Contact your superannuation fund or Centrelink for more information.
You may have consumer credit insurance on a personal loan, mortgage or credit card. This covers you if something happens that means you cannot make payments on your loan. This includes if:
If you borrowed money with another person and they die in a disaster, you may have loss-of-life cover. Contact your loan provider and get help from one of the support agencies listed in the ‘Where to get help’ section at the end of this page.
Legal advice and financial counselling for vulnerable people in Australia.
Tel: 1800 466 477 or (03) 9629 6300, Monday to Friday, 10 am to 1 pm
www.consumeraction.org.au
Legal advice and services for people in Victoria.
Tel: 1300 792 387, Monday to Friday, 8 am to 5 pm
www.legalaid.vic.gov.au
Legal advice for people under financial stress.
Tel: 1300 663 464, Monday to Friday, 9.30 am to 4.30 pm
www.insurancelaw.org.au
To make a complaint against an insurance agency
Tel: 1800 931 678, Monday to Friday, 9 am to 5 pm
www.afca.org.au
Information to help people understand their insurance needs
Tel: 1300 728 228 or 02 9253 5100, Monday to Friday, 8.30 am to 5 pm
www.insurancecouncil.com.au
Free financial counselling and help with dealing with debt
Tel: 1800 007 00, Monday to Friday, 9.30 am to 4.30 pm
www.ndh.org.au