Though the weather in Sydney is often sunny, warm, and the envy of others, this can change at the drop of a hat. A cloudless sky can quickly fill with dark storm clouds and torrential rain, leading to flash-flooding, lightning strikes, or even a barrage of golf-ball-sized hailstones.
The regularity with which these dangerous forms of weather is increasing as well. Recent data published by the Actuaries Institute has found that the frequency of extreme weather in Australia’s worst-affected regions has recently doubled when compared to the long-term average.
All of this unpredictable weather can, ultimately, lead to damage to your property. This is why catastrophe cover is a great idea for owners in a strata scheme to consider.
What is catastrophe cover?
Catastrophe cover is a form of insurance that protects your property against damage caused by natural catastrophes such as severe storms, floods, cyclones and bushfires.
Though it won’t prevent these disasters from occurring, it can help to get you back on your feet if a catastrophe strikes. If your insurance policy covers against a particular catastrophe, any damaged assets may be replaced by your insurer or you will receive a settlement up to the limits of your chosen policy.
The cost of catastrophe cover will vary from insurer to insurer, however rates will be largely determined by the risks of your area, as well as other factors such as the age of your home or type of soil your house is built on.
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Extraordinary catastrophes and disasters
If a community is faced with extensive damage as a result of naturally-occurring weather events, the Insurance Council of Australia (ICA) may declare it an “extraordinary catastrophe” or a “disaster”, which authorises insurers to prioritise claims made in the catastrophe zone and address these claims in a timely manner. The ICA’s role is effectively to coordinate communication between industry and government during the recovery phase of a disaster event.
According to the General Insurance Code of Practice, you can ask your insurer if your policy covers a particular loss before you lodge a claim and the insurer will be unable to discourage you from lodging said claim.
Should you consider catastrophe cover?
Here at Jamesons, we believe that catastrophe cover is something that you should consider. As mentioned, the Australian weather can be quite volatile at times, and getting catastrophe cover will give you a certain peace of mind if, say, floods happen to occur around your property.
Natural disasters are stressful enough on their own before you even think about whether your home and contents are protected. With good catastrophe cover, you’ll be able to worry less about your belongings getting damaged by the weather, as they should be covered by this insurance at an affordable price.
If you’re looking for more information on insurance options for your strata scheme, head on over to our document bank or get in touch with a member of the friendly team at Jamesons.