Bushfire Season and Insurance Claims: What You Need to Know

Bushfires are a devastating reality in Australia, and for many households, they strike with little warning. Beyond the immediate loss and emotional impact, survivors are often left navigating complex insurance claims in the hope of rebuilding their homes and lives.

Understanding whether your policy covers bushfire damage, and knowing what to do if your claim is delayed or denied, is essential. In this article, we explain how to ensure you have the right cover, the steps to take after a bushfire, and how legal support can help if disputes arise.

Does Your Insurance Cover Bushfire Damage?

Not all home and contents insurance policies provide the same level of bushfire protection. While most modern policies in New South Wales do include bushfire-related losses, there are key details to check before disaster strikes:

• Waiting periods: Many policies include a waiting period (often 72 hours) before bushfire cover applies. If you take out a new policy in the middle of bushfire season, you may not be immediately covered.
• Exclusions and limits: Some policies exclude certain types of property (e.g. fences, sheds, or outbuildings) or limit payouts on valuables like jewellery and electronics.
• Underinsurance risks: If your home and contents are undervalued, your insurer may not cover the full cost of rebuilding or replacing your possessions.
• Additional benefits: Look for cover that includes emergency accommodation, removal of debris, or temporary storage, as these costs can add up quickly after a fire.
  

Review your Product Disclosure Statement (PDS) carefully, and consider speaking with your insurer to confirm exactly what is covered.

Steps to Take When Filing a Bushfire Insurance Claim

If your property is damaged or destroyed in a bushfire, acting quickly and following the right process will strengthen your claim. Here’s what to do:

1. Notify your insurer immediately — Most insurers require prompt notification. Even if you don’t have all the details yet, making contact early is important.
2. Document the damage — Take photographs and videos of all affected areas and items before any clean-up begins. Keep receipts for emergency repairs or temporary accommodation.
3. Prepare a detailed inventory — List the items lost or damaged, including approximate values and purchase dates where possible.
4. Keep records of communication — Log all emails, phone calls, and letters exchanged with your insurer during the claims process.
5. Seek expert reports if needed — For major losses, professional assessments from builders, valuers, or engineers can provide independent evidence to support your claim.

The more evidence you provide, the smoother your claim process will be.

What If Your Claim Is Delayed or Denied?

Unfortunately, not all bushfire insurance claims are straightforward. Some policyholders face lengthy delays, underpayments, or outright denials. Common reasons for disputes include:

• Alleged non-disclosure (e.g. not telling your insurer about renovations or changes to your property).
• Disagreement about whether the fire directly caused the damage.
• Arguments over whether the property was adequately insured.
• Insurers relying on exclusions buried within the policy wording.

If your claim is denied or unreasonably delayed, you have the right to challenge the decision. Legal support can be critical at this stage.

How Legal Support Can Help

A lawyer experienced in insurance disputes can play a crucial role in protecting your rights. They will review your policy wording to determine whether the insurer’s decision is legally valid and can negotiate directly with the insurer on your behalf to resolve disputes. 

Where necessary, they may escalate the matter to the Australian Financial Complaints Authority (AFCA) or represent you in court if the insurer refuses to honour its obligations. 

Legal advice is particularly valuable where the financial stakes are high, such as in cases involving the total loss of a home or large-scale property damage.

Conclusion

Bushfires leave behind enormous challenges, and dealing with insurers should not add to your stress. By ensuring your policy properly covers bushfire damage, acting quickly when lodging a claim, and seeking legal advice if disputes arise, you put yourself in the best position to recover financially.

If you are struggling with a bushfire-related insurance claim, contact Maguire & McInerney Lawyers today. 

Our experienced team can review your case, negotiate with insurers, and help you secure the compensation you are entitled to.