Australian insurers are on alert for potential property damage claims after two low-magnitude earthquakes occurred hours apart on May 6, affecting residential areas around Melbourne and Adelaide.
While no significant structural damage has been confirmed as of May 7, insurers are monitoring developments closely.
According to 7News, the first earthquake – recorded at magnitude 2.8 – struck just after midnight in Victoria, with its epicentre located near Mount Dandenong in the Olinda region. The second, measured at magnitude 2.7, occurred at 2am in South Australia, with the epicentre near Nairne, east of Adelaide. Geoscience Australia reported that the quakes originated at depths of five and nine kilometres, respectively.
Reports of ground movement were submitted to Geoscience Australia by more than 600 individuals in Victoria and nearly 200 in South Australia. Residents from areas such as Craigieburn and Jam Jerrup in Melbourne and various suburbs across Adelaide confirmed feeling the tremors.
While such seismic events are generally mild in Australia, past incidents have had considerable consequences. A magnitude 5.4 earthquake in Adelaide in 1954 injured several people and caused widespread property damage, triggering over 30,000 insurance claims, according to historical records.
Geoscience Australia attributed the recent quakes to tectonic stress within the Australian plate.
“Earthquakes in Australia are caused by the slow build-up of stress in the interior of the continent,” it said, as reported by 7News.
The timing of the seismic activity coincides with a separate issue drawing attention within the insurance sector: property maintenance.
A new study by Allianz Australia found that 84% of homeowners are not conducting recommended regular checks on their homes. Only 16% inspect their property on a quarterly basis, while a significant number only do so when issues arise – or not at all.
Allianz recommends monthly inspections to help reduce risks associated with preventable damage, including water-related issues. Insurance Statistics Australia data indicated that claims due to burst pipes alone have reached $864 million over the last two years.
The study also identified key barriers to upkeep. Thirty-six percent of respondents cited a lack of knowledge or skills, and 32% pointed to financial constraints. Despite these challenges, 63% of homeowners admitted to carrying out their own repairs without professional help.
The urgency for proactive maintenance is growing in light of escalating weather volatility. According to NRMA Insurance, one in six Australians suffered damage to their property or vehicle during the recent summer season. Hail in the ACT, storms across New South Wales, and flooding in northern Queensland contributed to more than 95,000 insurance claims, based on data from the Insurance Council of Australia.
As seismic and weather-related risks increase in frequency and scale, insurers are urging policyholders to prioritise routine property inspections and maintenance as part of their risk management practices.
