One year on, most bushfire victims choose cash

Email Print

8 February 2010

Victims of the Black Saturday bushfires appear to be abandoning their communities in the wake of the $1.1 billion disaster.

With 95% of claims finalised, the Insurance Council of Australia (ICA) says insured losses stand at $1.1 billion with nearly all claimants opting for cash payments instead of rebuilding their homes. The first anniversary of the bushfires was yesterday.

Only 8% of the 10,280 claimants now processed have requested reconstruction. The figure is in stark contrast to the aftermath of most natural disasters, where more than 80% usually choose to rebuild.

ICA says anecdotal reports from insurers suggest residents are deterred from rebuilding by underinsurance, safety concerns and the effort required.

More than 80% of claims from February’s bushfires were property and content related.

The Black Saturday bushfires are now the ninth most damaging catastrophic event in Australian history. More than 2000 homes and 136,000 hectares were lost from 480 separate bushfires across the state.