Preparing for Bushfire Season

With summer quickly approaching, emergency services throughout Australia are encouraging Australians to be bushfire ready. The bushfire season in Australia generally runs from October to April with peak activity often occurring between December and February.

According to the Insurance Council of Australia, bushfire accounts for more than $3.4b in insurance claims since 2010, with the complete damage bill being considerably higher. Current estimates suggest that 5.6m Australian homes are at risk of a bushfire. With such a huge exposure and cost associated with bushfire, being prepared is critical when it comes to reducing the risks posed to your property and assets.

What should you do to protect and maintain the safety of your home and loved ones?

1. Prepare your Property
If your home and / or investment property is situated in a bushfire prone area, there are steps you can take to help decrease the risk of extensive damage to your property in the event of a bushfire and to positively influence your renewal negotiations and insurance premiums. Cleaning your gutters, installing sprinkler systems inside of your property and maintaining sprinklers or other watering systems outside of your property can all positively contribute to your overall risk profile and reduce the likelihood of damage occurring. Keeping gardens well maintained and clearing vegetation from the immediate vicinity of your property can also aid in protecting both your home and land.

2. Plan ahead
Have an up-to-date evacuation plan and ensure all members of the household are aware of the plan. Assemble an emergency kit which includes essentials such as water, food and first aid supplies so that you are prepared should you need to evacuate the property. With insurance in mind, and in the unfortunate event that you have need to make a claim, keep an inventory or register of all of your contents (and keep it stored away from the property or electronically) so that you can evidence your loss to insurers and receive an equitable claim payment in the event of damage or loss.

3. Stay Alert
By monitoring local fire warnings and alerts through emergency broadcasts you can remain informed and aware in the event of a major bushfire and can ensure you have the time to enact your evacuation plan effectively should the need arise.

4. Keep your insurance policies up-to-date
The Insurance Council of Australia reports that the cost of repairing or rebuilding a home in 2024 is 27% higher than it was at the start of the COVID-19 pandemic. Unfortunately, many homeowners do not update the sums insured in their insurance policies on a regular basis and so are under-insured. Under-insurance can lead to reduced claim payments, and in some circumstances, to complete coverage declinatures. It is crucial to ensure the sums insured in your insurance policies remain up-to-date so that in the event of a catastrophic bushfire, your policy will respond with a full claim payment – allowing you to get on with the process of recovery and rebuild without being exposed financially.

Bushfire season in Australia can be a dangerous and challenging time. It is critical to ensure you are prepared for a worst-case scenario and that your insurance policies are up-to-date and appropriate for your needs. By understanding the risks and taking proactive measures, you and your community can better protect each other and your properties.

Author: Samar El Haddad

References:

Insurance Council of Australia – Australia’s insurance industry snapshot July 2024 https://insurancecouncil.com.au/wp-content/uploads/2024/07/INCA015-Fact-Pack_v12_No-Crop-Marks.pdf

Please contact one of our advisers if you would like further information on this article.