AAMI warns insurer messaging is not reaching consumers, as internal research reveals many Australians do not know how to prepare for natural hazards.

The Suncorp-brand says there is growing awareness of such threats but much of the country is “dangerously unprepared”.  

About 29% of survey respondents believe they can take out insurance just before an incoming disaster hits, while 38% are unsure; 30% believe insurance covers repairs after extreme weather regardless of whether a home has been correctly maintained.  

About 56% mistakenly believe they cannot handle damaged items until an insurance assessor arrives, and 68% think they need to request flood coverage on their home policies.

AAMI natural hazard claims and assessing head Steven Hussey says insurers typically implement a temporary “embargo” during natural hazard events to block new policies or coverage changes.  

“Insurance is designed to protect against unforeseen events,” he said. “When a flood, cyclone, bushfire or storm is extremely likely or imminent, it is no longer unforeseen.”  

The research also found 66% of respondents do not know when the country’s storm season starts – September 1 – and 78% are unaware storm preparations should be made at least four times a year.

AAMI says the findings “reveal a concerning truth” and has urged policyholders to take proactive steps to inform and protect themselves.  

“We encourage all Australians to review their insurance needs now, and if they have any questions, they should contact their insurer immediately,” Mr Hussey said.

“Knowledge is power, and by understanding when and how to act, Australians can become stronger and more resilient to extreme weather.”