After natural disasters strike, communities come together to rebuild and recover—but unfortunately, not everyone has good intentions. In the aftermath of ex-Tropical Cyclone Alfred, homeowners across southeast Queensland and northern New South Wales are facing the daunting task of repairing and rebuilding. However, as the community comes together to recover, a sinister threat looms: the rise of dodgy repair schemes.
As disaster victims focus on getting their lives back on track, it’s crucial to recognise the warning signs of these dishonest schemes to be protected from further hardship.
The Insurance Council of Australia (ICA) has issued a stern warning to residents to be vigilant against ‘disaster chasers’—unscrupulous individuals preying on the vulnerable in times of need.
The ICA’s alert comes as insurance claims related to the cyclone have surged to 34,000, a figure that underscores the scale of devastation and the urgency for repairs. However, in this rush to restore normalcy, homeowners must navigate a minefield of potential scams that could leave them out of pocket and with substandard work.
‘Disaster chasers’ are known to swoop into affected areas, offering quick fixes and clean-up services, often demanding cash upfront. Their scheme includes performing shoddy or incomplete work, which not only fails to rectify the damage but can also invalidate future insurance claims.
These rogue operators may also conduct unsolicited home inspections, pressuring homeowners to sign contracts for repair work with the false promise that insurers will foot the bill.
The consequences of falling victim to these schemes can be dire. Homeowners may find themselves liable for hefty ‘commissions or inflated repair bills’ that their insurance policies do not cover. This is why the ICA cautions that insurers will only reimburse costs for approved work that falls within the terms of a policy.
To date, insurers have paid out nearly $2.4 million in 6,000 small emergency cash claims, primarily for essentials like food and temporary accommodation. Yet, as the number of claims continues to rise, the importance of due diligence and working with reputable repair services cannot be overstated.
The devastation wrought by ex-Tropical Cyclone Alfred has been extensive, with flooding continuing to wreak havoc on roads, homes, and businesses until Wednesday. While Queensland has lifted its emergency alerts, NSW remains on high alert with ongoing flood warnings.
Of the tens of thousands of insurance claims filed, the vast majority are from Queensland, covering damage to over 29,000 homes, approximately 1,400 vehicles, and around 1,200 businesses.
The ICA’s chief executive, Andrew Hall, notes that the volume of claims is ‘increasing significantly each day,’ highlighting the critical need for coordinated recovery efforts.
In response to the crisis, insurance executives, government agencies, and the National Emergency Management Agency of Australia have convened to ensure resources are directed where they are most needed.
Insurers have taken proactive measures, including contacting over a quarter of a million customers to share safety and preparation advice, adding claims consultants, and establishing major event response teams.
To protect yourself and your property from dodgy repair schemes, here are some essential tips you could consider:
1. Verify credentials: Always check the credentials of any repair service or contractor. Ensure they are licensed, insured, and have a good track record.
2. Avoid cash payments: Be wary of services requesting upfront cash payments. Legitimate businesses will provide detailed quotes and offer secure payment options.
3. Contact your insurer: Before agreeing to any repair work, consult with your insurance company to confirm coverage and approved contractors.
4. Get multiple quotes: Don’t rush into repairs. Obtain several quotes to compare prices and services.
5. Report suspicious activity: If you encounter a ‘disaster chaser,’ report them to authorities to help protect your community.
By staying informed and cautious, you can navigate the post-cyclone recovery process without falling prey to opportunistic scammers. Remember, rebuilding takes time, and it’s worth investing that time to ensure the work done on your home is legitimate and lasting.
We at YourLifeChoices encourage our readers to share their experiences and advice on dealing with post-disaster repairs. Have you encountered ‘disaster chasers’? What steps did you take to safeguard your home? Join the conversation in the comments below and help your fellow readers stay informed and protected.
Also read: Tropical cyclone aftermath: How scammers are profiting off tragedy
My concern….I lost a $250 medication, plus far more than $150 freezer food. I have home insurance, eligible to claim $400, with no excess. But – if I make a claim, will this adversely affect my future premiums? And if I seek an insurance quote from another company, when they ask ‘have you made an insurance claim’ – do I say yes, or no? Do companies just work on ‘previous claim, or value of that claim? All because of a $400 claim?