Cyclone insurance

How do I get cyclone insurance?

You can get cyclone cover included as standard in most home insurance policies.

Since a cyclone is a type of storm, you'll find it covered under storm cover. For example, Budget Direct refers to a storm as "a weather event, including cyclones, that may be accompanied by strong winds, rain, lightning, hail, snow, or dust."

All the policies outlined above can cover you for cyclones.

If you are unsure whether an insurer you're considering offers storm coverage, contact them directly or read through their product disclosure statement (PDS).

How does home insurance cover me for cyclones?

If a cyclone damages your property, home insurance can cover the costs of repairing or rebuilding your home from scratch. It can also replace the contents inside it. Cover can include:

When won't I be covered for cyclone damage?

While you're generally covered for cyclones, there are a few things that commonly get excluded when a cyclone hits.

What about storm surges?

You most likely won't be covered for storm surges caused by cyclones. This is because insurers don't cover storm surges in general. They commonly define a storm surge as an increase in the sea level caused by a weather event that pushes water onshore. A cyclone could potentially be this "weather event", hence you might not be covered.

Still confused? Insurers haven't made this one easy to work out. Put simply, a cyclone is likely to push more water towards the shore when moving over water, creating a rise in the sea level and impacting coastal areas as a storm surge. So if your home is damaged due to a storm surge because a cyclone pushed the water to the shore, you might not be covered. To be sure what you are and are not covered for, call your insurer and ask them.

Terms and phrases to watch out for cyclone insurance

There are a few terms you need to be wary of when it comes to cyclone insurance, as it can help you determine if you will be covered or not. When reading through the product disclosure statement (PDS), look out for the following phrases:

• Storm surge: Storm surges are a common exclusion, except when they occur at the same time as a flood (and your policy covers you for floods), in which case your claim will be accepted. As already suggested, it's unlikely you will be covered for storm surges even if they are caused by a cyclone.
• Flood: Flood cover is different from storm cover. While most home insurance policies come with storm cover (which includes cyclones) many policies don't include flood cover. Others might provide it as an extra-cost option. Be sure to read your PDS closely to determine whether or not your policy covers floods. In insurance terms, a "flood" is defined as "the covering of normally dry land by water that has escaped or been released from the normal confines of any lake, river, creek or other natural watercourse, whether or not altered or modified, or any reservoir, canal, or dam".
• Actions of the sea: Similar to storm surge, king tides and other actions of the sea are usually excluded from cover. You probably won't be covered for damage caused by actions of the sea, even if they are caused by a cyclone.

How to prepare for a cyclone

If you live in a cyclone prone area, preparing in advance can help keep you and your loved ones safe. According to the Insurance Council of Australia, there are several steps homeowners can actively take to get ready:

Prepare your home:

• Check with your local council to see if your home is built to cyclone standards.
• Ensure you have home and contents insurance well in advance of the cyclone. Most policies will have a waiting period of around 48–72 hours.
• Check your roof and repair any loose tiles, eaves or roof screws.
• Ensure windows are fitted with shutters or metal screens.
• Trim any branches hanging over your house and clear gutters of leaves and debris.
• Check that your emergency survival kit is complete.
• Make sure everyone in the house recognises the Standard Emergency Warning Signal, which is broadcast on TV and radio when a cyclone is 12 hours or less away.

When you hear the warning:

• Stay up-to-date with current warnings for your area and receive SMS at https://www.emergencyalert.gov.au/.
• Clear your property of all loose items including outdoor furniture, children's toys, bins and gardening equipment.
• Secure boats and vehicles or move cars under cover.
• Fill buckets and your bath with water in case your water supply gets cut off. You should also have enough water purification tablets.
• Make sure your windows are closed securely. If you don't have shutters, tape your windows in a criss-crossing fashion using strong packing tape to hold broken glass in place.
• Unplug electrical equipment.

Long-term preparations

• Stay on top of your property's maintenance to prevent corrosion, rotted timber or loose structures that can weaken the structure of your home.
• Install or upgrade your windows, shutters and doors to ensure all fixtures and locks can withstand strong wind.
• Use a home and contents insurance calculator annually to double check your insurance policy still aligns with the estimated cost to repair your property. This can prevent underinsurance if you ever needed to make a claim.

How to make a cyclone insurance claim

Follow these 4 steps to make a cyclone insurance claim:

Get a claim form

Call your insurer or visit its website. Most insurers have an online form you can use to fill out your cyclone insurance claim. You're also welcome to mail the details of your claim to your insurer.

File a claim

Complete the form by answering a few questions about the incident. Attach any relevant documented evidence (e.g. photographs, receipts, etc) of the damage to your home and contents. Avoid cleaning up until you've spoken to your insurer.

Wait for the claim to be processed

Your insurer has up to 10 days to respond but in cases like a cyclone, there is usually more than one case which means it's likely to take a little longer. During this time it may contact you to confirm details or send an assessor to your home.

Your claim will be accepted or rejected

You will receive a response from your insurer to whether your claim was accepted or rejected. If your claim is accepted, your insurer will share details on when and how you can expect reimbursement.

If your claim is rejected, you can file an internal dispute with your insurer. If that doesn't work you can also file a complaint with the Australian Financial Complaints Authority.

FAQs

• What is a cyclone in insurance?

  In home insurance terms, a cyclone refers to a natural disaster characterised by strong winds, heavy rainfall, and sometimes storm surges, typically causing extensive damage. Cyclone insurance covers property damage caused directly by cyclones.

• Does travel insurance cover cyclones?

  Travel insurance may cover certain cyclone-related disruptions, such as trip cancellations, delays or changes due to cyclone warnings. Coverage varies by policy, so it is essential to check specific terms regarding natural disasters. You may not be covered if the disaster was expected, if you travelled against warnings or if you put yourself in danger.

• Are cyclones covered by insurance?

  Yes, most home insurance policies will include cover for cyclones as standard. Often, insurers will refer to 'weather events' in their cover and this includes things like storms, lightning and cyclones.

• Does comprehensive car insurance cover cyclone damage?

  Yes, comprehensive car insurance generally does cover cyclone damage as well as other natural disasters, such as storms, hail or floods. However, never assume you're automatically covered. Read through your product disclosure statement (PDS) or get in touch with your insurer to confirm.

Written by

Ceyda Erem

Senior writer

Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

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