Tips for protection during the NSW bushfire season

23 December 2008

The Insurance Council today moved to remind New South Wales 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.

“At this time of year 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,” said Ms Kelly. “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.

Householders that live in a high risk bushfire area should consider obtaining a quote for the cost of a complete rebuild of their property, this can be sought from a registered builder. High risk bushfire areas are those that are located close to a national park or have had bushfire warnings in the last 5 years.

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 31.5% of New South Wales is without contents insurance.

“NSW policyholders directly contribute to the NSW Fire Brigade and NSW Rural Fire Service through purchasing insurance and paying fire levies. The insurance industry and policyholders are by far the largest contributor to these fire services, paying NSW State taxes of as much as $200 on the average metropolitan home and contents policy, and $160 on the average regional policy,” said Ms Kelly.

“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 www.ema.gov.au

Please click here for a PDF copy of this media release.

Media Enquiries: Sean Sampson 02 9253 5161 0421 482 884