The Insurance Council of Australia (ICA) has advised vulnerable residents to exercise caution regarding the presence of “disaster chasers” within their community following severe storms that occurred over the Christmas period.
According to the ICA, disaster chasers specialise in providing swift solutions for cleanup, repairs, and inspections, often requiring immediate cash payments for services that may fall short of standards or remain incomplete. Some employ high-pressure tactics, urging homeowners to hastily sign contracts for future repair work with promises that their insurance will cover associated costs.
However, homeowners are urged to exercise caution, as insurers will only cover approved work specified in the policy, leaving residents vulnerable to commissions or inflated repair bills not covered by their insurance policy.
The ICA offers practical tips for identifying and managing interactions with disaster chasers:
“Unfortunately, extreme weather events like cyclones and flooding often attract unscrupulous individuals who exploit the vulnerability of affected communities,” said ICA CEO Andrew Hall. “We urge insurance customers to be vigilant and protect themselves from these predatory practices. Contact your insurer, verify credentials, and don't let untrustworthy individuals cloud your judgment.”
The ICA recently declared an “insurance catastrophe” in response to the severe storms that impacted Queensland, New South Wales (NSW), and Victoria over the Christmas period.
