Insurers warn of scams after Queensland hailstorm recovery

Policyholders advised to check credentials before hiring repair services

Insurers warn of scams after Queensland hailstorm recovery

Catastrophe & Flood

By Roxanne Libatique

The Insurance Council of Australia (ICA) has issued a public advisory to residents and businesses in Gympie, Maryborough, and nearby areas after recent hailstorms, urging them to be cautious of individuals and groups known as “disaster chasers.”

These operators are reported to approach communities recovering from severe weather, offering services such as debris removal or property repairs, often seeking cash payments upfront.

Meteorological overview of recent hailstorm

On Oct. 2, southeast Queensland’s Wide Bay and Burnett districts experienced severe thunderstorms, resulting in large hail and significant rainfall.

Meteorologists reported that an upper trough moving over southern Queensland, combined with warm and humid surface conditions, led to the rapid formation of supercell thunderstorms.

Satellite data indicated that cloud tops rose sharply from just over 1,500 metres to nearly 10,000 metres near Childers in under an hour.

The event produced hailstones up to 8 centimetres in diameter in the Maryborough region.

Additionally, more than 204,000 lightning strikes were recorded within 200 kilometres of Hervey Bay over a nine-hour period, with ground strikes accounting for over 25,000 of these incidents.

Insurers highlight risks following severe hailstorms

According to the ICA, disaster chasers may fail to complete the work or deliver substandard results, leaving policyholders at risk of financial loss.

The council recommends that anyone approached by such contractors contact their insurer before agreeing to any services or signing contracts.

Kylie Macfarlane, deputy CEO and COO of the ICA, said it is not uncommon for individuals to take advantage of communities following severe weather events, targeting those who have been impacted.

“We strongly encourage community members to remain vigilant, and if anyone suspects they have been contacted by these opportunists, immediately report them to the appropriate authorities,” she said.

Guidance for policyholders on engaging contractors

The ICA has outlined several steps for policyholders to protect themselves from disaster chasers:

  • Insurers will always notify policyholders before sending any tradesperson or builder to a property and will provide identification details
  • Policyholders should consult with their insurer prior to approving any repair or rebuilding work to confirm that the work will be covered
  • Tradespeople or builders working on behalf of insurers will not request payment directly from policyholders
  • Residents are encouraged to ask for identification, such as a builder’s licence or driver’s licence, and to verify the contractor’s details with their insurer
  • If a contract has been signed with a disaster chaser, there is a statutory 10-day cooling-off period. Insurers can assist with terminating such agreements within this window

Those affected by the recent hailstorm or subsequent weather events are encouraged to contact their insurer to lodge claims or seek policy advice.

“Insurers are ready to support customers through the recovery process and customers are encouraged to make a claim if they have been impacted by the recent weather,” Macfarlane said.

ICA to host storm claim consultations in Casterton

The ICA, together with participating insurers, will return to Casterton in mid-October to facilitate in-person consultations for policyholders impacted by the October 2024 hailstorm.

These sessions, scheduled for Oct. 14-15 at Casterton Town Hall, are designed to assist residents with outstanding claims, clarify documentation, and provide guidance on the claims process.

Consultations will be available from 9:30am to 5pm on Tuesday and from 9am to 5pm on Wednesday. Policyholders are required to register in advance via the ICA website. The sessions will also cover dispute resolution and other relevant insurance topics.

Insurance professionals are encouraged to guide clients on best practices when selecting contractors and to support policyholders throughout the claims process in the aftermath of severe weather events.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!