Topic: Bushfire tragedy in Victoria, Australia

[Terry in Australia]

Well you know you're right Bill, but just about every 20 years we have a tragedy involving big fires like this, and everyone nods their heads sagely and says, "this should never happen again", but of course, it does.

Bushfires in Australia are as natural as snow in the mid west of the US, and about as unavoidable. Certainly, some of these fires were deliberately lit, and the big one in the Kinglake/St Andrews area could well have been caused by a faulty power line, but when Captain Cook discovered Australia in 1770, he reported seeing several bushfires along the east coast of Oz.

What is emerging now, is that as many as 30 percent of folks who lost their homes were either under-insured, or uninsured, according to the insurance council of Australia.

Now I don't necessarily disagree, but can nevertheless understand low or no income families renting in the area not insuring their homes contents because they can't afford to or don't consider their belongings worth insuring, but the council is saying that the owners of these homes weren't insured either, which I think is ludicrous.

They might not have had much before the fires, but the've got considerably less now. Cheers, Terry.

[Bob Wessner]

What a shame, the 30% un/under insured. I don't know the specifics of Australian insurance, or high risk areas, but ordinarily homeowner's insurance is incredibly cheap insurance considering the possible losses.

[Terry in Australia]

G'Day Bob, you're right mate, it's pretty cheap here too, although I don't know specifically what the cost would be in the more bushfire prone areas.

As I said, I can understand renters not always insuring their contents, but not home owners. I couldn't afford to start again with nothing but the clothes on my back, so to me, it defies logic not to insure. Cheers, Terry. 

[Grumpol]

The biggest problem is the old faithful "Act Of God"
Insurance companies have been using that as an out for decades, the government asked them not to be bastards and just pay out, some of them have but i`m waiting for the stories of those that dont.

[Terry in Australia]

I don't think they'll try it mate, 3AW, our most popular AM radio station here in Melbourne has asked the bushfire victims to call in if they have any problems with insurers (or any other service providers) and 3AW will publicly take their complaint to the insurers "on air", and so far all I've heard is praise for the insurance companies.

One lady called to say that the family's earth-moving business was wiped out when their two excavators were destroyed in the fire, and within 7 days of the fire, (and only a couple of days after submitting the claim) Allianz gave them a cheque for the full amount.

There is an opportunity for these big "faceless" corporations to get some good publicity at a time when the plight of the fire victims is the nation's main focus, so I doubt that anyone will get screwed this time around. Cheers, Terry.       

[Grumpol]

Thanks for the news terry, i was wondering what was happening with all that and was waiting for some news about it

[BobbyR]

What a shame, the 30% un/under insured. I don't know the specifics of Australian insurance, or high risk areas, but ordinarily homeowner's insurance is incredibly cheap insurance considering the possible losses.

That is generally true Bob. However in Florida my mother in law could not get insurence nor could anyone else. The companies pulled out after the big hurricanes. The State had to step in and set up a fund which effectively doubled the premiums. Now some smaller companies are trickling in. She is about a 15 minute drive from the Gulf. I would imagine in OZ the companies would look at fire prone areas about the same way.

[Bob Wessner]

I wonder what homeowner's insurance costs in California considering earthquake risk or wild fire, depending on your location?

[BobbyR]

I am sure they set the rates accordingly, or they don't cover you for losses from those events.

[mark]

I wonder what homeowner's insurance costs in California considering earthquake risk or wild fire, depending on your location?

It was actually pretty cheap, even for a house in the middle of a forest. Tearing off the cedar shakes(kindling, anyone?) and re-roofing with composition shingles cut the fire ins. premium in half.