Wild weather warning: Surprising amount of Australians living in areas affected by natural disasters do not have home insurance

• In the past ten months there has been five natural catastrophes costing $1.69 billion in home and contents insurance claims
• More than a third (37%) of Australians live in an area at risk of a natural disaster 
• 15% of Australians who live in an area that has been affected by floods do not have any form of home and content insurance 
• 16% of Australians who live in an area that has been affected by bushfires do not have any form of home and content insurance 
• Almost a quarter (23%) of home insurance customers have never reviewed their policy and over a third (36%) of home insurance customers only review their policy when they move house

In a country where natural catastrophes happen on a regular basis, new research from Mozo has found that a surprising amount of Australians living in areas affected by floods, fires, and cyclones do not have home insurance. 

The Insurance Council of Australia has declared five natural catastrophes over the last ten months, accumulating $1.69 billion in home and contents claims. 

With over a third (37%) of Australians living in an area that has been previously affected by a natural disaster, with floods and storm affected areas the most common (21%).

“Whether it be flash flooding, bushfire or a hailstorm, when you live in Australia it's likely your home will be exposed to Australia's wild weather conditions. In the event where your property is damaged, home and contents insurance can help soften the blow,” says Tom Godfrey, Mozo spokesperson.

Mozo’s research revealed that over a quarter (26%) of Australian households who have previously been affected by storms and cyclones do not have any form of home and contents insurance.

It also revealed that some of those affected by bushfires (16%) and floods (15%) are not protected by insurance should Australia’s wild weather strike again.

“With another La Niña weather event expected to hit the eastern states of Australia this summer, it’s imperative Aussies take the time to assess the risk of their property being damaged before it is too late.”

When it comes to Australians who already have home and contents insurance, Mozo found almost a quarter (23%) never review their policy, and over a third (36%) make the time to  review only when they move house.

"Home insurance isn't something to set and forget. You may have added goods into your home or done some home improvements like adding a new porch. Regularly reviewing and updating your level of cover will ensure you aren’t out of pocket should your property be damaged.”

“Like all financial products, loyalty to your insurance provider doesn’t always pay off, so make sure you compare the price of your policy every couple of years,” says Godfrey.

Tips:

As soon as your home has been damaged, take photos of the affected area, this will help process your claim
When seeking approval to make repairs make sure you have a copy of this approval in writing from your insurer 
Heading into the natural disaster season, it’s always a good idea to update your personal inventory list,  just in case your home is damaged or destroyed. This is also a good way to keep track of your contents to make sure you’re insured for an accurate amount
Read the fine print, it may take you an hour or so but it’s time well spent, as it will educate you on the all the events you are covered for

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Notes:  Mozo commissioned a nationally representative survey of 1,670 Australians conducted by Researcify between 10 September  2021 - 18 September 2021. Natural catastrophe insurance costs from Insurance Council of Australia, Insurance Catastrophe Resilience Report: 2020-21 .