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Tips for Protection During the ACT Bushfire Season

23 October 2008

The Insurance Council has today reminded ACT householders of the need to check that they have appropriate insurance cover to avoid severe financial loss in the event of a disaster this bushfire season.

In 2003, the Canberra community was devastated by bushfire. The insurable loss and subsequent repair bill was over $450m. The general insurance industry played a key role in rebuilding the lives of many insured Canberra households. It is a timely reminder of the importance of having appropriate levels of insurance to protect your assets.

“Going into summer, it is good planning to consider your home and contents insurance. An insurance policy forms an integral part of risk mitigation to protect your valuable assets. With the bushfire season upon us, now is the time to re-assess the value of your home and your contents,” said Kerrie Kelly, Insurance Council, Chief Executive.

In Australia 19 of the 20 largest property losses in the previous 40 years have been weather related, this includes property losses from bushfires.

Ms Kelly strongly advised that all householders undertake a detailed review of their insurance needs, especially the cost of replacing all property contents inside and outside of the home. This should be done by undertaking a room-by-room evaluation and inventory. Free calculation guides are available on most insurance websites.

To properly evaluate the cost of a complete rebuild of their property, householders that live in a high risk bushfire area should consider obtaining a quote from a registered builder.

The social and economic costs are potentially enormous if a complete loss occurs. Non-insurance is a major problem in Australia with research commissioned by the Insurance Council showing that 23% of Australian households are without contents insurance.

“It is very important that householders know and understand what they are and are not covered for under their particluar insurance policy. Policyholders should be aware of any exclusions and ask their insurer or insurance broker to clarify if they have any queries. Policyholders need to ensure they have an insurance policy that suits their individual circumstances,” said Ms Kelly.

For further practical information on how to prepare and act when your home is threatened by a bushfire, Emergency Management Australia, has produced a series of action guides and advice on how to deal with various disasters. For more information visit http://www.ema.gov.au/

For a PDF copy of the above media release please click here.

Media Enquiries:   Sean Sampson   02 9253 5161   0421 482 884