The Australian Financial Complaints Authority has urged Exmouth residents to be cautious if their insurer offers a cash settlement after Cyclone Narelle. About 13 complaints followed residents’ struggles to receive proper compensation from insurance companies after the cyclone in March.
Settlement Quotes Under Scrutiny
Lead ombudsman Emma Curtis said insurers must account for the lack of locally available trades and materials when they prepare settlement quotes. Residents should consider local availability when deciding whether an offer would cover the repairs they need.
Curtis urged people to think carefully about whether they could complete repairs for the amount offered. Her warning concerns the gap between a cash offer and the cost of repairs when trades and materials aren't locally available.
Complaints After the Cyclone
About 13 complaints followed residents’ difficulties getting proper compensation from insurance companies after Cyclone Narelle in March. The Australian Financial Complaints Authority warns residents to assess whether an insurer’s cash settlement would cover the repairs.
The source doesn't provide details about individual complaints, settlement values or the number of insurers involved. It also doesn't state how many Exmouth residents received cash offers. Curtis advises residents to weigh each offer against the practical question of whether they can complete repairs for that amount, given the local shortage of trades and materials.