Beware the Aftermath: When Storms Bring Opportunistic 'Disaster Chasers'
In the wake of devastating storms, a new threat emerges—'disaster chasers,' preying on vulnerable residents. With over 19,300 insurance claims filed after a severe thunderstorm in south-east Queensland, the Insurance Council of Australia (ICA) issues a warning. But here's where it gets controversial—these chasers aren't your typical storm survivors; they're opportunists looking to profit from others' misfortune.
The ICA highlights a disturbing trend: individuals offering quick-fix clean-up services, repairs, and inspections, often demanding upfront cash payments for subpar work. Liam Walter, ICA's director, warns that these chasers pressure homeowners to sign contracts for future repairs, promising insurer coverage. However, this can lead to homeowners being liable for commissions or inflated bills not covered by their policies.
The Legal Trap:
Legal Aid Queensland's senior lawyer, Julie Maron, shares a concerning trend from her work in flood-affected areas. Unsuspecting residents have signed contracts with individuals offering insurance claim management, only to face dire consequences. These chasers knock on doors, pressuring homeowners into contracts, and may even use social media and posters to lure victims.
The Digital Deception:
Ms. Maron reveals a digital twist—people signing contracts on devices at their doorstep without receiving a written copy. This lack of transparency leads to unexpected termination fees and hidden costs. In some cases, companies manage insurance claims and then charge exorbitant fees for repairs, exploiting the limited funds from insurance payouts.
Protecting Yourself:
Queensland Building and Construction Commission's (QBCC) CEO, Angelo Lambrinos, advises homeowners to ask contractors for their licenses and check their records. The Office of Fair Trading recommends verifying traders' legitimacy through the Australian Securities and Investment Commission (ASIC) and ensuring they have an Australian Business Number (ABN).
Contract Caution:
The ICA emphasizes that insurers won't send tradesperson without prior notification. Homeowners should contact their insurer before agreeing to repairs, ensuring coverage. Mr. Walter urges residents to report any damage, even if the extent is unknown, to their insurer.
Your Rights:
If you've been approached by these chasers, know your rights. The Office of Fair Trading grants a 10-day cooling-off period for contracts over $100, allowing homeowners to cancel without penalty. The ICA encourages residents to reach out to their insurer for guidance.
And this is the part most people miss—while 'disaster chasers' are a concerning issue, it's essential to strike a balance between caution and supporting legitimate businesses offering post-disaster services. How can we protect ourselves without hindering genuine recovery efforts? Share your thoughts in the comments below.
