We’re already seeing insurance claims from these natural disasters coming in, and with many communities still experiencing loss of power we’re expecting the number of claims to increase. At AIB Insurance Group we have set up a dedicated team that’s standing by and ready to assist all of our customers with their insurance claims, and we’ll continue to do what we can to make the claim process as simple and straightforward as possible.
We’re seeing claims on a range of policies, including home, contents and motor vehicle. We expect further claims associated with loss of revenue/business interruption, commercial property, plant-machinery and stock to mount as we uncover further damage associated with these events. We’re also hearing stories of people who weren’t insured when disaster struck. We’ve seen that these disasters can occur unexpectedly, and the damage they cause can be financially catastrophic, which is why having insurance is crucial.
First and foremost, insurance for natural disasters provides financial protection. When a natural disaster strikes, it can cause significant damage to your property, including your home and belongings. The cost of repairing or replacing these items can be expensive, and without insurance, you may be forced to pay for these costs out of your own pocket. With insurance, you can file a claim and receive the financial support you need to rebuild and recover.
These natural disasters also act as a timely reminder to review your insurance to ensure you’re covered at an appropriate level. If you set up your insurance some time ago it’s likely that the sum insured might not be sufficient to cover rebuilding your house or purchasing any lost items. We’ve seen inflation increase significantly over the last 12 months and the cost of building has been continuously increasing, so it’s important to review your sum insured amounts to ensure you’ll receive what you need to get your life and property back on track.
Another reason insurance for natural disasters is important is that it can help you get back on your feet after a disaster. After a natural disaster, it can be challenging to find a place to live. Alternative accommodation policy extensions help policyholders with temporary accommodation and time to assess their next steps during a difficult time.
Peace of mind can come from the use of insurance cover it provides us that sense security and the backup plan we all need. Our homes, and other assets are secured, our businesses can rebound should the worst happen and we can confidently work hard and invest with confidence.
How natural disaster loss is covered can vary between commercial and domestic polices and then again for properties that have a mixed use (commercial and domestic use within the same building). It's crucial to ensure the policy settings meet your expectations. Homeowners insurance typically includes natural disaster cover in conjunction with the governments EQC cap.
In addition to purchasing insurance, there are other steps you can take to prepare for natural disasters. This includes creating an emergency plan, stocking up on supplies, and securing your property. By taking these steps, you can help minimise the damage caused by a natural disaster and potentially reduce the cost of repairs.
We highly recommend that all of our customers visit the Civil Defence website - https://www.civildefence.govt.nz/ - and familiarise themselves with the recommendations made regarding disaster preparation and response. The website has a wealth of information on how to prepare for disasters, so we encourage you to ensure you, your family and your friends are prepared.
It's never too early to start preparing for a natural disaster, so take the necessary steps now to protect yourself and your property.
