Home insurers in Australia are predominantly opting to pay out claims in cash rather than covering repairs or rebuilding, according to a corporate regulator review. This approach risks leaving policyholders with significantly higher out-of-pocket expenses for storm-damaged properties, particularly in cyclone-affected areas. The regulator has flagged concerns that current settlement practices may result in unfair financial burdens for already vulnerable homeowners. Critics argue insurers should offer more substantial payouts to ensure repairs are fully managed rather than forcing claimants to navigate inflated costs alone.
Corporate regulator finds insurers settling most claims with cash rather than by managing repairs or rebuilding, warning of ‘unfair outcomes’ for homeownersGet our breaking news email, free app or daily news podcastHome insurers are overwhelmingly paying cash to settle claims, leaving Australians to foot blowouts in repair costs for their cyclone-damaged homes.The corporate regulator is calling for “realistic” bigger payouts, warning the practice could cause “unfair outcomes” for people already in vulnerable positions. Continue reading...
