The Port Pirie office of MGA Insurance Brokers has applauded the creation of an insurer consultation hub in the SA city to help with claims after a record storm late last year.

The brief but powerful storm struck unexpectedly on November 22, bringing wind gusts of up to 119km/h and leaving the local golf course scattered with 150 felled gum trees. MGA estimates thousands of claims could average about $35,000 each.

The Insurance Council of Australia hub will run at the local yacht club on Wednesday and Thursday next week.

“It’s a great idea, a great initiative, particularly as the storm wasn’t declared a catastrophe yet the ICA is still coming to town,” local MGA portfolio manager Andrew Fleming told insuranceNEWS.com.au.

“I might go along to discuss with one particular insurer a couple of cases that we’ve got where claims are dragging out.”

MGA clients submitted about 200 claims, and only one-third have been settled so far. Only 10%-15% were commercial, because the storm hit south of the CBD.

A shortage of available tradespeople in the city, 230km north of Adelaide, has created claim delays. The timing, a month before Christmas, made securing repairers harder.

“By the time we made lodgements and tried to get assessments, trades were already busy trying to wind up their existing work and a lot go on holiday until the end of January. That’s had a fair bit to do with the delays,” Mr Fleming said.

“If they want the insurance company to engage the builder, then it’s not finalised until the repair work is completed – and I’d say those ones will be at least [another] five months, could be longer.”

Still, MGA cautions clients who may be tempted to accept cash settlements. “The tradies are talking today – it doesn’t factor in fuel prices, and what materials or trades may cost in the future.”

Two vehicle repairers in the city were swamped with work, and specialist dent removers such as Erasadent arrived and are still there.

Another hurdle was tree removal, with some policies covering removal of portions on a claimant’s property only – not beyond the fence line.

“There was a lot of community spirit in cleaning up the debris. A lot rolled up their sleeves, got to work and took it upon themselves to remove trees and debris,” Mr Fleming said.

Hail blocked gutters, causing water ingress and soaking insulation, with ceilings later collapsing. There was damage to solar panels, roofs, pergolas, windows, fly screens, roller shutters and sheeting. Many air conditioners had to be fully replaced to protect warranties.

Temporary accommodation is scarce. Visiting specialists have had to commute from neighbouring towns and there are cases of residents who “just got by living in their house with no ceilings for a period of time ... the place looked like a war zone”.

Insurance assessor workloads were extreme and some MGA clients had to have their properties reassessed.

Mr Fleming’s own insurance claim builder came up from Melbourne and saw 150 houses in 10 days.

“That’s a big workload. I don’t think quite a lot of assessments were as thorough as they could have been.”

On the upside, Mr Fleming says the clean-up has helped the local economy, with some businesses experiencing unprecedented demand.

“Having extra people, you have coffees, breakfast, lunch and tea. And the local lawn-mower man sold 52 chainsaws in a week – he wouldn’t sell 52 chainsaws in a year normally.”

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From the latest Insurance News magazine: Why some businesses in regional Australia are taking desperate measures on coverage

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