Home Insurance Natural Disasters – Australia is known to be prone to natural disasters such as flash floods and severe bushfires, the consequences of which can be devastating. The problem with natural disasters is that no preparation can be taken for granted, and despite the best intentions and precautions, if you live in a bushfire-prone area of Australia, some amount of damage is inevitable.
For these reasons, it is very important to ensure that your home insurance policy covers all natural disasters.
Home Insurance Natural Disasters
Over the past decade Australia has been hit by heatwaves, droughts and floods which have caused significant damage to human property. If you live in an area prone to natural disasters, you should be well aware of the importance of protecting your home from these events and how to recover from them.
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You may have insurance, but does your home insurance cover natural disasters that can damage your home and property? Not everyone is, and you would be surprised to learn that not everyone has adequate insurance coverage on their home and contents.
Most home insurance policies cover sudden or accidental water damage caused by storms or floods. However, many insurers will check whether the damage is sudden or gradual and, if the latter is the case, it may be down to poor maintenance on your part and may not be covered.
When purchasing a home insurance policy, carefully read the water damage clause in the Product Disclosure Statement (PDS). Each lender will have different guidelines on coverage and the wording may vary.
Before you sign on the dotted line, be sure to discuss all your concerns about potential water damage with your insurer. Remember, when you file a claim, it is your responsibility to ensure that the water damage was a sudden, natural disaster and not accumulated over time. You should negotiate with your insurer before carrying out any major repairs.
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Fortunately, many policies offered by Australian insurers include protection against fire damage. But it is important to make sure that the policy covers damage resulting from smoke and ash from the fire, because they can cause serious damage. If your policy doesn’t cover them, you may want to consider additional coverage for these conditions.
Fire damage is usually not limited to the exterior of the home, but can also extend to interior items. You also want to make sure you have adequate fire protection for your property. Of course, you have the option of purchasing separate policies for your home and contents, but if you take out an insurance policy for your home and contents, you’ll be better off killing two birds with one stone.
