Page 17 - Advice Matters - FWP May 24

Insurance recovery and

claims process

After disaster hits The initial scope of works may need to be reassessed after
repairs have started or if further damage is uncovered –
Commence claim and that is ok, revision of the scope of works is a normal
First step is contacting your insurer and you can do this, part of the process.
even if you don’t know the full-extent of damage.
Make safe Repair / replace or cash settlement
If your property has been damaged, your insurer will Repair or replace
arrange emergency works as soon as it is safe to do so Once your Scope of Work has been agreed, it’s time to
to minimise any hazards and prevent further damage. This repair or replace the damaged property. If your insurer is
can include removing loose debris, isolating damaged managing the repair/rebuild, they will appoint a builder,
solar panels or electrical circuits and installing a roof tarp. arrange the contracts and notify you of the construction
Assessing the damage schedule. Your insurer will also manage local council
An insurance assessor (or claims adjuster) will inspect approvals as required.
the damage to your property. Specialist reports may be Cash settlement
required to determine aspects of your claim, for example Alternatively, you may take a cash settlement to manage
Hydrologists may be required to determine the cause the repair or rebuilding work yourself. It’s important that
of water inundation and Engineers may be required to you comply with council regulations and buildings codes,
consider any structural damage. as well as using a licensed builder. If you fail to do this,

Claim decision your home may not be insurable in the future.
This is a key claim milestone where your Insurer will Feedback / complaints
confirm what you are covered for. The nature of a claim
will determine how long it takes to make a claim decision, If you are unhappy with the handling of your insurance
for example where specialist reports are required the claim, you can lodge a complaint with your insurer. Your
decision process will generally take longer insurer has a dedicated dispute resolution process to
resolve your concerns. And as AFCA will highlight, if you
Scope of Work (or Statement of Work) need further assistance, you can contact the Australian
Financial Complaints Authority.
The Scope of Work is the written report that sets out the
repair or rebuild work to be performed and end products Source: https://insurancecouncil.com.au/resource/insurance-recovery-
that are expected to be used. It’s important to read the process/
report and let your insurer know if changes are required.

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