Beware the 'Disaster Chasers': A Warning for Storm-Affected Communities
In the aftermath of severe storms that battered southeast Queensland, residents are being urged to stay vigilant against a new threat: 'disaster chasers'. These individuals and companies prey on vulnerable homeowners, offering quick fixes and repairs that often lead to financial burdens and further damage.
The Insurance Council of Australia (ICA) has received over 19,300 insurance claims following the October 26th thunderstorm in Brisbane and its surrounds. Another 3,880 claims were made after consecutive storms from October 31st to November 2nd, bringing hail as large as 8 centimetres to certain areas.
The ICA's Warning:
The ICA is concerned about opportunistic individuals who offer rapid clean-up, repairs, and inspections, demanding cash upfront for subpar work. Liam Walter, the ICA's director of mitigation and extreme weather response, warns that some of these 'disaster chasers' pressure homeowners into signing contracts for future repairs, promising their insurer will cover the costs.
But here's where it gets controversial: Mr. Walter explains that homeowners may be left liable for commissions or inflated repair bills not covered by their insurance policy. Insurers only pay for approved work covered by the policy, leaving homeowners vulnerable to financial strain.
How 'Disaster Chasers' Operate:
Julie Maron, a senior lawyer with Legal Aid Queensland's disaster help service, has been assisting flood-affected communities in north Queensland. She shares insights into the tactics of these unscrupulous individuals.
"They'll go door-to-door, talking people into signing contracts," Ms. Maron explains. "They use social media and posters in impacted areas to advertise their services."
Ms. Maron highlights a common issue: homeowners are often not provided with a written copy of the contract and are left unaware of the fee structure and the actual scope of work.
"They end up with large termination fees and no clear understanding of what they signed up for," she adds.
Red Flags to Watch Out For:
Angelo Lambrinos, chief executive and commissioner of the Queensland Building and Construction Commission (QBCC), advises homeowners to ask contractors for their license. "If they can't show it, show them the door," he says.
Homeowners can also check the QBCC license register to verify a contractor's record, qualifications, and disciplinary history. The Office of Fair Trading recommends checking a traveling trader's company or business name with the Australian Securities and Investment Commission (ASIC) and ensuring they have an Australian Business Number (ABN).
Protecting Yourself:
The ICA emphasizes that an insurer would not send a tradesperson or builder to a home without notifying the owner and providing details. Homeowners are advised to speak to their insurer before agreeing to any repairs or rebuilding work to ensure coverage.
If you have sustained damage but haven't made a claim yet, Mr. Walter recommends contacting your insurer, even if the extent of the damage is unknown.
What to Do If You're a Victim:
Customers have additional rights if a salesperson or trader comes to their home unannounced. According to the Office of Fair Trading, if the contract is worth over $100, the homeowner is entitled to a 10-day cooling-off period during which the salesperson cannot take money, start work, or provide goods or services. The contract can be cancelled in writing at any time during this period.
The ICA advises people with doubts to contact their insurer for guidance and support.
And this is the part most people miss: it's crucial to be vigilant and informed to protect yourself and your loved ones from these 'disaster chasers'. Stay informed, ask questions, and don't be afraid to seek help. Your community and support networks are there to assist you through these challenging times.
What are your thoughts on this issue? Have you or someone you know encountered 'disaster chasers'? Share your experiences and insights in the comments below to raise awareness and support one another.
