The Insurance Council of Australia (ICA) has issued an alert to residents and businesses in South East Queensland about the risks posed by “disaster chasers” following a series of recent hailstorms and severe winds.
These events, which have resulted in thousands of insurance claims, have also created opportunities for unlicensed operators to approach property owners with offers of immediate repairs.
Disaster chasers typically approach affected homeowners and business operators soon after major weather events, offering to conduct repairs or inspections.
These individuals often request cash payments upfront or pressure residents to sign contracts on the spot, sometimes with assurances that insurers will reimburse the costs.
However, such arrangements can leave policyholders responsible for unexpected expenses, as insurance companies generally only cover work that has been pre-approved and is within the scope of the policy.
The ICA has advised that legitimate tradespeople or builders working on behalf of an insurer will not request payment directly from policyholders. Insurers will also notify customers in advance if a contractor is being sent to their property.
Residents are encouraged to ask for identification and to verify the credentials of anyone offering repair services by contacting their insurer directly.
Policyholders who have already entered into agreements with disaster chasers have a statutory 10-day cooling-off period and are encouraged to seek guidance from their insurer on how to terminate such contracts.
The recent storms have led to a significant volume of insurance claims. Following the hailstorm on Oct. 26, more than 19,300 claims have been submitted, with an additional 3,880 claims following subsequent storms between Oct. 31 and Nov. 2.
The ICA recommends that anyone who has experienced damage should contact their insurer to start the claims process, even if the full extent of the loss is not yet clear.
Liam Walter, ICA director of mitigation and extreme weather response, commented: “Disaster chasers can emerge soon after a storm and target impacted householders. They can leave families, the elderly, and vulnerable Australians much worse off, with large bills and homes that remain damaged. If you’re in doubt, get in touch with your insurer.”
Major insurers are reporting high claim volumes as a result of the storms.
Insurance Australia Group (IAG), which includes NRMA Insurance, CGU, WFI, ROLLiN’, and RACQ Insurance, has received over 4,900 claims as of Oct. 31.
Suncorp Group has also seen a substantial number of claims, with over 5,500 lodged by the end of October, including approximately 5,000 from Queensland and 500 from Victoria.
Suncorp estimates the net cost of the event to be between $220 million and $260 million, with final figures to be confirmed in its next financial update.
In response to ongoing recovery needs, the New South Wales government has introduced a Disaster Recovery Standing Panel to streamline the delivery of essential equipment and services after major events.
The panel will include approved suppliers able to provide items such as temporary shelters, generators, and water purification systems.
The NSW Reconstruction Authority is seeking expressions of interest from suppliers, with a focus on engaging local businesses.
Applications are open until Nov. 21 via the Opportunities Hub on the buy.nsw.gov.au platform.
Minister for Recovery Janelle Saffin said the initiative aims to ensure resources are available quickly when disasters occur, allowing communities to begin recovery efforts without delay.
“We have learned from past disasters that getting critical resources on the ground quickly is essential for communities to begin their recovery,” she said. “This initiative offers businesses, including local small businesses, a meaningful opportunity to play a key role in disaster recovery and contribute to creating more resilient communities across NSW.”
Ashlee Abbott, acting head of preparedness and recovery at the NSW Reconstruction Authority, added that the panel will help connect communities with trusted suppliers and enable a faster response during critical periods.
“Every minute counts when disaster strikes. This proactive approach means we’ll no longer be chasing suppliers after the fact – the equipment and capability will already be ready to go,” she said.
