Prepare for cyclone season by checking your insurance

 

Australian cyclone season is from November till April and affects citizens situated in tropical areas. This includes a large majority of Queensland homes, which have suffered from cyclone damage in previous years.

Last year when Cyclone Marcia hit Central Queensland, it caused damages to 3000 homes and $522 million in insurance losses.

Does your insurance cover cyclone damage?

Many businesses were also ruined due to Cyclone Marcia and decades of work building and managing farms was swept away within an instant. Without insurance, it is near impossible to rebuild and regain traction within the industry.

There are reports that this cyclone season will not be as extreme as last, but this isn’t a reason to become lax in caution. The unpredictable nature of weather means that it is more important than ever to take control of the things you can now and cover yourself against extreme weather conditions.

General storm insurance doesn’t always cover cyclone damages.

When insuring your business, it’s important to speak to an expert who understands both your situation, and the insurance risks and policy wordings. For example, in many insurance policies, there is a strict difference between a flood and a ‘storm surge’.

A storm surge is when an offshore rise of water is caused by high winds pushing on the ocean’s surface and surging onto land; this is usually a tropical cyclone or hurricane.

Sometimes, insurance won’t cover storm surges in isolation. They will only cover insurance for a storm surge when it happens simultaneously with a flood or a storm, which cause the overall damages to occur.

Sound confusing?

There are many technicalities surrounding general storm, flood and actions of the sea insurance. One major insurer specifies that they do not cover loss or damages of wharves, jetties, pontoons or retaining walls caused by floods, storms, or actions of the sea. If you’re having trouble wrapping your head around what types of insurance you are covered for, consider consulting with an insurance broker.

Rest assured knowing you have the exact insurance that you need.

An insurance broker knows how to navigate insurance policies to find the best coverage to suit your individual needs. Don’t risk sourcing your own insurance, or leaving it to a staff member, and assume that it covers all extreme weather conditions. The last thing you need when your business has been damaged by a natural disaster is to discover that you are not covered by your insurance policy to rebuild and repair. Do yourself a favour and contact an insurance broker for peace of mind, and reliable services during a time of potential distress.