08 Jan Fallout from the NSW Hailstorms
Fallout from the NSW Hailstorms
The Insurance Council of Australia declared the December 20 storms a catastrophe, with over 25,000 claims totaling $125 million, received in the first 48 hours after the event.
This was the fifth catastrophe declared in 2018 by the Insurance Council. In March, bush fires in New South Wales and Victoria resulted in $82.5 million in insured losses. In the same month, Cyclone Marcus caused $62 million in claims, with $16.8 million from floods in Queensland. In May, storm and flood damage around Hobart resulted in $99.6 million in insured losses.
As of 7 January 2019, Insurance Council of Australia reported the damage bill at approximately $673.9m across 81,194 claims lodged.
What are the implications of a catastrophe declaration?
A catastrophe declaration means insurers will make claims from the related event their priority. Insurers will triage claims to ensure the worst-affected policy holders receive urgent attention.
In relation to Strata properties, a catastrophe declaration will trigger the Catastrophe cover within a Strata Insurance policy. The Catastrophe section provides a percentage increase to sum insureds, protecting against the escalation of building costs following a declared catastrophic event.
It should be noted that Catastrophe cover is more often than not an optional cover and must be selected in order to be included. To discuss this optional cover further, please contact our Strata Team on 1300 880 494.
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. CRM Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of CRM Brokers.