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With the bushfire season starting in Queensland and in many parts of the north and west of NSW this week, brokers may need to remind clients to ensure they are adequately covered against the risk.
According to Understand Insurance, the financial-literacy initiative of Insurance Council of Australia (ICA), more than eight in 10 households are likely uninsured against the risk, made worse by record drought conditions, unseasonably warm weather, and below-average rainfall.
“With early indicators pointing to severe bushfire danger in many parts of our country, Understand Insurance is encouraging home and business owners in rural areas and bush-fringe suburbs to urgently prepare their properties and personal evacuation plans,” said Lisa Kable, UnderstandInsurance.com.au spokesperson. “Unfortunately, some Australians become complacent about their bushfire risk. They shouldn’t.”
Bushfires are costing Australians millions of dollars in damage each year, and just less than five months ago, the bushfires that devastated parts of NSW and Victoria destroyed 125 properties, worth $82.5m in insured losses.
“Householders living in bushfire-prone areas of Queensland and NSW should get their properties ready now. Preparation can be time-consuming, so start sooner rather than later,” Kable said.
Tom Dawson, Queensland Rural Fire Service assistant commissioner, urged communities to take proactive measures to “complement the work of firefighters and help protect the community this bushfire season.”
“Mowing the lawn, clearing gutters, and ensuring there is clear access into and out of properties in the event of a fire are all steps that can be taken around the home,” Dawson said.
