Warning: This factsheet only provides information and should not be relied on as legal advice.

This guide covers the following topics: 

PART 1                 How are bushfires and insurance related?

Bushfires have the capacity to wreak great havoc and can be responsible for devastating losses. In the case study, the fires tragically took Barb’s husband as well. All Barb has left are her insurance policies. If you have insurance, the damages and losses resulting from bushfires may be recoverable depending on what type of insurance you have and the extent of that cover.

If you have:

• Home Building Insurance – you might be covered for the destruction or partial damage to your property;

• Home Contents – you might be covered for bushfire damage to your personal belongings and household possessions.

• Motor Vehicle Insurance – you might be covered for bushfire damage to your motor vehicle;

• Life Insurance – you or a family member might be covered in the event of a death. This insurance could be obtained through a life insurer or as part of your superannuation benefits. Be aware that many superannuation funds provide some level of life insurance cover for their members even if they are no longer employed.  Additionally, claims can also be made for injury or permanent disablement.

If you are in any doubt about whether or not you have insurance, contact your insurer or the Insurance Council of Australia on 1300 728 228 or even your superannuation fund (for life insurance).

PART 2                 Does my insurance policy cover me for bushfires?

Depending on your actual policy, damage caused by bushfires may be covered as part of fire damage (if this cover is unqualified in any way). For example, your policy wording might read:

“Fire damage is an insured event” and there is no mention of whether bushfires are excluded.

There may also be specific references in your Policy dedicated to bushfires or this may be a clarification on whether or not fire damage includes bushfire damage and to what extent.  For example, your policy might say:

“Fire, including bushfire, is an insured event.”

Some common clarifications dealt with in such clauses might include:

• Fire is covered as an insured event. However, your insurer will not cover for loss/damage caused by bushfires within the first 48 hours (or 72 hours etc) of the Policy or some other time limit.

• To be covered for bushfire damage within those time limits, some policies might require:

• If you are purchasing a property, that risk for damage/loss to the property passed to you as purchaser of your home immediately before you took out the Policy, or

• You sign a lease contract for your home immediately before you take out the insurance policy, or

• Without any break in cover, you take out insurance with the insurer immediately after another insurance policy covering the same risk (e.g. same building or contents) and for the same amount has expired. 

NOTE: Some policies will specifically state that you won’t be covered for the first 48 (or 72 hours etc) of the Policy if your new insurance is for a greater amount than the insurance that just expired.

Be aware that exclusions for fire related damage may also apply. Some common exclusions include:

No cover for loss or damage as a result of

Scorching, melting, heat, smoke, ash or soot 

where there was no flame, or your home/contents did not catch fire.

The extent of your cover will ultimately depend on the wording of your particular Policy. Some policies may state that your insurer:

Will pay for damage to your home/contents caused by a burning building within 10 metres of your home.

In addition to very specific wording in your Policy, you should also be aware that your Policy may place a general obligation on you to take precautionary measures to prevent loss. The wording may not specifically refer to fire damage or bushfires, but will equally apply to those scenarios. An example of this could be where you may have left your gutter uncleaned and filled with leaves. These leaves could possibly catch fire from embers carried by the wind. This however is arguable if the fire was of a sudden or even unavoidable ferocity.

It is also arguable whether cutting/burning trees surrounding your property to prevent the likelihood and impact of bushfires might fall within such precautionary measures as permission for such actions require local council approval. Taking such measures may comply with your obligations under your insurance contract but be in breach of local planning laws and regulations.

An example of a precautionary clause is:

You must at all times, and at your expense, take all reasonable precautions:

• For the safety and protection of your building and the site,

• To prevent bodily injury or damage to property,

• To prevent damage to your building,

• To ensure compliance with all statutory obligations, by-laws or regulations imposed by any public authority, relating to the safety of persons or property.

If you do not, we may reduce or refuse to pay any claim you may make.

GOLDEN RULE: It can be difficult to work out what is covered by your policy so if you are unsure get advice from the Insurance Law Service (1300 663 464) or your private solicitor.

THINGS TO CHECK FOR IN YOUR POLICY: In relation to the extent of bushfire cover, some insurance policies:

• Have a time delay (e.g. 48 hours) after you’ve entered into the insurance contract for the policy to take effect in relation to bushfires. This is important because you will only be covered after this time delay but see the section on “Non Disclosure” below.

• Exclude cover where there has not been any actual flame damage (such as damage from scorching, melting, heat, smoke, ash or soot).

• Limit cover where you have not taken adequate precautions to prevent damage or loss.                                       

                                                        (Above research conducted by Legal Aid NSW)

PART 3                  How do I make a claim?

If you have insurance, you should contact your insurer to make a claim as soon as possible. It does not matter that your policy documents have been burnt/lost as your insurer can easily verify any cover you have with them. If you do not know the name of your insurer you can ask for assistance from the Insurance Council of Australia on 1300 728 228.

For information on how to make a claim on your home and/or contents insurance, please see: Making a claim on car insurance

For information on how to make a claim on your motor vehicle insurance, please see: Making a claim on home and contents insurance

PART 4                  What are typical issues to consider in bushfire insurance claims?

1. Underinsurance  

Underinsurance refers to the situation where an insured has undervalued their home and or contents policy. This means that they will not have sufficient insurance to cover their loss or damage, even if their claim is approved.

Underinsurance is a major problem particularly in times of natural disasters such as floods or bushfires, as the cost to rebuild can easily rise due to the increased demand for builders and building materials.

Statistics obtained from the Insurance Council of Australia in 2007 showed that “up to 81% of those who are insured will be more than 10% shy of true rebuilding costs.” (http://www.insurancenews.com.au/analysis/bushfire-underinsurance-a-threat-and-maybe-an-opportunity, accessed 20/02/09).

Some insurers offer options on your Policy to increase the safety net of protection, in return for you paying additional premiums. You will know this when you see clauses such as:

                “Safety net home protection – 25% extra of the home sum insured”

Insurers may also offer complete replacement cover. This is where regardless of the extent of your losses, what you have lost is replaced. For example, if your home was completely destroyed by bushfires, the insurer will pay for the cost of completely rebuilding your home.

Insurers cannot be expected to pay for more than the amount that you are covered for. However, your insurer has a duty to clearly inform you in writing that their liability is limited to a particular amount before the contract is entered into. (Section 35 of the Insurance Contracts Act 1984( Cth))

Is my insurer responsible for the sum my home is insured for?

1. Unless otherwise stated in your particular policy, whilst your insurer offers an amount for the sum insured, on every renewal the onus is on you to review it to ensure that it meets your needs and expectations. A renewal statement might read:

“Each renewal, we increase your sum insured to help keep pace with inflation and consequently your premium will increase. As always, you are free to choose a sum insured level which best suits your needs and we recommend you review the amount of your cover periodically, particularly if you have made changes to your assets.”

1. Remember that you are under no obligation to accept the original sum insured amount which you may have been advised of by your insurer. If you are not satisfied with the amount, you can negotiate to increase it.
2. The General Insurance Ombudsman (Financial Ombudsman Service) has made determinations saying that, “it would be unreasonable for a policyholder to treat an insurer as a home valuation provider.” (Determination Referral No: 103 05 17370)

Replacement v Indemnity Cover

Recent experience with the ACT January 2003 and the 2009 Victorian Black Saturday bushfires has shown that you will need to read your policy very carefully to determine whether you have indemnity cover or replacement cover (i.e. new for old replacement). This is particularly important as it may result in you not being able to recover the full value of your insurance cover.

If you have indemnity cover, your insurance policy might allow for the rebuilding of your property up to the sum you insured it for. However, there will likely be clarifications on this cover where you do not rebuild and choose instead to sell the land. In such cases, your policy could say that your insurer will only repay the indemnity value of the property (its value taking into account depreciation).

If you have a replacement cover, your insurer should compensate you for the amount it would cost to replace (or rebuild for buildings) your damaged or destroyed building/contents to the condition it was in just prior to the fires. Any settlement agreements to pay you a certain amount must be qualified by this requirement to fully compensate you for the amount it would cost you to replace your buildings. For example, if the rebuilding amount for your destroyed property has been underestimated, you have a right to seek whatever additional amounts would be necessary to bring the rebuilt property to the condition it was in prior to the fires. On this point, see also the discussion below on Additional Benefits in relation to compliance with new regulations.

2. Cash Settlement or Repair/Replacement  

Often the decision as to whether to repair, replace or cash settle a claim is that of the insurer’s. Look for something like the following clause in your policy,

                “We will decide how we settle your claim

                If your contents or valuable items suffer loss or damage, we will decide whether to

• Repair an item
• Replace an item, or
• Pay you the cost to repair or replace the item.”

If you are offered and decide to accept a cash settlement, see the section below entitled “Additional Benefits” before you sign any deeds of releases or otherwise finalise your claim.

3. Fences

Fences are typically part of a specific cover that you would need to pay extra for. For example, you can ask for fence cover in relation to:

• Half Share – boundary fences which you share with your neighbours

• Full Share – boundary fences not shared with your neighbours

• Sub divisional – all other fences except boundary fences (i.e. internal fences)

If you do not have specific cover for fencing, depending on your type of policy or whether your sum insured is not already exhausted, there may be a general basic cover for fence up to a limited amount (e.g., up to $2,500 for all fences). Contact your insurer to find out the extent of your cover for repairing or replacing fences.

4. Cancellation of policy due to failure to pay insurance premiums

There are two main scenarios when non payment of premiums can result in your insurer cancelling your policy.  Many bushfire victims have only discovered after the fires that their insurance has been cancelled due to their failure to make the premium payments.

A. Can my insurer cancel my insurance contract if I don’t pay my premiums?

The short answer is yes. Under section 60(1) of the Insurance Contracts Act, if you fail to comply with a provision in your insurance contract (such as a provision requiring you to pay premiums) your insurer can legitimately cancel your policy. However, conditions will apply.

An example of instalment contracts of insurance is when you pay premiums on a monthly basis.

Under section 62 of the Insurance Contracts Act, an insurer can cancel your policy without giving you notice of the cancellation under the Act, if:

• At least one instalment of premium is overdue for at least one month; and 

• Before you entered into the insurance contract, the insurer clearly informed you in writing of this.

What all this means is that as soon as one instalment of premium payment is overdue, your insurer can:

• Wait for it to be overdue for one month and then cancel without telling you. Insurers can only do this if they clearly informed you in writing before you contracted with them.

• Give you a cancellation notice complying with section 59 of the Act. This will then be effective to cancel your policy.

• Among other things section 59 says that for non life insurance contracts, your insurer must give you written notice of any proposed cancellation at least 14 days before they cancel.

If your insurer did not give you anything in writing (before you entered into the contract) telling you about their right to cancel your policy without notice if you fail to pay premiums for at least one month, and did not also comply with section 59, then they cannot cancel unless they have followed notice requirements under section 59. If they didn’t cancel correctly, your policy will still continue until expiry. For what happens after expiry see “Cancellation of policy due to failure to renew.”

ii. If you pay your insurance premiums in yearly payments

In order to cancel your policy, your insurer must give you notice complying with section 59 (that is, for non life insurance contracts, your insurer must give you written notice of any proposed cancellation at least 14 days before they cancel.)

B. Can my insurer limit or deny my claim if I don’t make an instalment of premium?

The answer to this question is yes but only if:

• At least one instalment of premium has remained unpaid for at least 14 days; and
• Before the contract was entered into, the insurer clearly informed you in writing of this.

                                                         (Section 39 of the Insurance Contracts Act)

The answer to this question is yes. If you pay premiums yearly and you do not pay those premiums, you will not obtain cover. See below also on “Cancellation of policy due to failure to renew.”

5. Cancellation of policy due to failure to renew

This scenario is different to when you don’t pay premiums and your policy is subsequently cancelled. The crucial difference in renewal cases is that you have failed to renew your policy when your policy lapsed/expired.

Under section 58(2) of the Insurance Contracts Act, your insurer must give you written notice no later than 14 days before the day your policy expires informing you:

• Of the day and time at which your cover will expire and

• Whether the insurer is prepared to negotiate to renew or extend the cover.

Under section 58(3),

• if your insurer does not give you this renewal notice and subsequently seeks to cancel your policy on the basis that you failed to renew your policy when it expired, and

• provided you haven’t obtained insurance elsewhere to replace that insurance,

before the previous contract expires, there will exist a statutory contract of insurance (insurance created under the Act) that will provide you with insurance cover to the same extent as the previous contract commencing from the expiry of the previous contract and for the same period as your previous contract or until you get another insurance cover.

This essentially means if your insurer failed to comply with section 58, the policy will continue as if you had renewed it and for the same period as the previous policy.

PART 5                  Additional Benefits under your policy

There may be additional benefits under your home building and/or contents policy which may cover you for emergency/alternative accommodation, removal of debris and demolition, architects, surveyor and legal fees etc.

These additional benefits can be in addition to your sum insured. Therefore, before agreeing to any settlement of your claim, it is important that you check to see if you are entitled to more than your sum insured through the existence of additional benefits cover.

Some of these additional benefits are discussed in more detail below.

1. Emergency/Temporary Accommodation

If as a result of the bushfires, your house was completely destroyed or rendered uninhabitable, you should contact your insurer to find out:  

• Whether you are entitled to compensation for alternative or emergency accommodation under your insurance policy;

• How long you will be covered for that accommodation. The period in which you are covered for accommodation will largely be dependent upon your particular policy; and

• Whether the amount for emergency/temporary accommodation will be provided in addition to your sum insured or whether it will be included in your sum insured.

An example of a clause to look out for to determine whether or not you are covered for temporary accommodation is:

“We [the insurer] will pay the reasonable costs incurred by you for comparable accommodation for up to 12 months while your building is being rebuilt or repaired.”

If you have been relocated to emergency “community” accommodation, it is also worth contacting your insurer to determine whether you are eligible for emergency “private” accommodation. If you live in a remote area, there may be no private accommodation available. Contact your insurer to determine what is likely to happen in such cases.

THINGS TO CHECK FOR IN YOUR POLICY: In relation to temporary/emergency accommodation, some insurance policies:

• Specifically state a percentage (e.g. 10%) of the value of the policy for which your insurer will cover you for in relation to temporary/emergency accommodation;

• Provide for a specific time period within which you will be able to claim in relation to such emergency accommodation;

• Provide for a “reasonable time”;

• Provide that your insurer will pay for “reasonable costs” (as was the case with the example provided above).

 

2. Demolition and/or Removal of Debris 

During bushfires, not only can whole buildings be damaged and destroyed, but you may experience the problem of debris scattered across your property. The costs to remove such debris from your property and clear your land can be significant.

You will need to review your policy carefully to determine whether your insurer will cover you for the demolition and/or removal of debris associated with bushfire damage.

One example of such a clause could be:

“We will pay the reasonable costs of demolition and removal of debris and of anything which caused the loss, destruction or damage.”

You, as the insured, have to establish that the cost of removal of debris is fair and reasonable and applies to the damaged property insured under your policy. This means that:

• you need to substantiate the costs you incurred in removing debris from your property by providing evidence of these costs;

• you need to show that these costs are reasonable;

• unless otherwise stated, for removal of debris that fell during the bushfires, your insurer may only be liable to pay for the cost of removal of those debris if it is within the boundary of the property that is insured. If the wording in your policy is ambiguous, seek legal advice because in ambiguous cases, the policy may be interpreted against the person/company that drafted that clause.

So what is “debris” exactly?

“Debris” is something that will be defined in your insurance contract. Some insurance policies are worded in such a way that trees, shrubs and plants are not considered debris. This exclusion may be done through a series of clauses. Make sure you look out for these.

You might think you are covered for all types of debris when you read a clause such as the following:

“When the buildings and/or contents have been destroyed or damaged by any of the insured events covered by your policy, we will pay the reasonable cost of:

                                                Demolition and

                                                Removing buildings and contents debris from your risk address”

However, if you see any clauses in your contact such as the following you will know you are not covered for trees and shrubs debris.

                “What are not buildings: The following items are not buildings:

                                Landscaping, trees, shrubs and plants;

                 What are not contents: The following items are not covered by this policy:

                                Trees, shrubs, plants growing outdoors in the ground” 

As you can see, if you contracted to this insurance policy, because your policy is only limited to the removal of debris to “buildings or its contents”, and because “trees, shrubs and plants” aren’t considered buildings or its contents, the removal of fire damaged trees and plants are not covered by the policy.

The result may sound strange to suggest that damaged trees and shrubs aren’t debris, but in most cases and except in standard contracts, insurers have the discretion to determine what risks they are willing to accept.

Also note that with the above example, “contents” only excluded those plants “growing outdoors in the ground.” Therefore, you may claim on your damaged flowers or herb gardens grown indoors.

If you are unsure as to whether your Policy covers you for the demolition and/or removal of debris or even if your claim for demolition and/or removal of debris increases the rebuilding or repair costs for your property to above what you are covered for, you may want to argue that given the ferocity of the fires, your insurer under the duty to act with utmost good faith, should cover the reasonable costs of the removal of debris. This argument however should only be used as a final resort as insurance contracts are typically read and interpreted clause for clause and word for word.

3. Architects, surveyors and legal fees

Most home building insurance policies these days provide additional cover for the costs of the services of architects, surveyors and legal fees in rebuilding and/or repairing damage to buildings.

If you are unsure whether you are covered for these, check to see if you have a clause in your policy similar to the following:

“We will pay the reasonable costs of architects, surveyors and legal fees when damage or loss occurs. We will pay up to 10% of your buildings sum insured.”

4. Compliance with new regulations

Many insureds are concerned about whether their insurers are required to pay for the additional amounts required to ensure that a rebuilt property complies with new fire safety standards that only came into existence after the fires.

The experience of the 2009 Victorian Black Saturday bushfires has highlighted this as an area of major concern to some insureds on covers such as replacement cover. 

The answer to this question is that it will depend on what you are entitled to under your policy. An example of a clause to look out for is:

“We will also pay any additional costs required for your buildings to comply with government or local authority by-laws.”

If your policy has a clause with the same or a similar wording, it is very likely that your insurer will cover you for the costs for additional compliance with new regulations including those about fire safety standards of properties in bushfire prone areas. It is also likely that you may be covered for additional compliance costs if your policy is to replace your property “as new.”

If you cannot find this clause in your policy documents, it is unlikely that you are covered for these new compliance costs, but it is always worth checking with your insurer to see if they are willing to negotiate on this issue.

For those seeking new cover to protect their bushfire prone properties, it may be useful to ask for this type of cover as an additional benefit of your policy.

PART 6                  The General Insurance Code of practice

The General Insurance Code of Practice contains some provisions that provide relief or protection to insureds who find themselves the victims of bushfires. Assistance under the Code is provided through the following avenues:

1. Urgent Financial Need

The General Insurance Code of Practice obliges your insurer to fast-track your claim if you are in urgent financial need (Clause 3.7a) and to make an advance payment within 5 business days of you satisfactorily demonstrating your urgent financial need (Clause 3.7b). Remember that any advance payment will be deducted from the total value of your claim.

2. Repairs to Property

For bushfire related damage, it is very likely that buildings will need to be either reconstructed or repaired. As with all repair workmanship and materials claims, be aware that:

Under the General Insurance Code of Practice, where your insurer has selected and directly authorised a repairer, they will:

• accept responsibility for the quality of workmanship and materials (clause 3.13a); and

• handle any complaint about the quality and timeliness of the work or conduct of the repairer (clause 3.13b).

3. Responding to Catastrophes and Disasters, and Reopening Settlements 

The General Insurance Code of Practice contains clauses specifically designed to apply to disaster cases such as bushfires and floods. Two useful clauses are:

• Your insurer will respond to catastrophes and disasters in a fast, professional and practical way and in a compassionate manner. (clause 4.2)

• If you have a property claim resulting from a catastrophe or disaster and your insurer has finalised your claim within one month of the catastrophe or disaster, you can request a review of your claim if you think the assessment of your loss was not complete or accurate, even though you may have signed a release. Your insurer will give you one month from the finalisation of your claim to ask for a review of your claim. Your insurer will inform you of:

• This entitlement when they finalise your claim; and

• Their complaints handling procedures.                                                                   (Clause 4.5)

In the experience of the 2009 Victorian Black Saturday bushfires, the Insurance Council of Australia and the general insurance industry has agreed to allow the time limit for people to reopen their settlements to be extended to within 6 months after finalisation of the claim. Therefore, in disaster cases, if you feel that there are still unresolved issues, it is worth contacting your insurer even if you have already settled on your claim.

PART 7                  Other Common Bushfire Insurance Issues

1. Non Disclosure

If, in the case study above, Barb and Leo had obtained their policy 24 hours before a bushfire engulfed their property and under their policy, there is a clause that reads:

“Fire, including bushfire, is an insured event. However,

      We will not cover loss or damage caused by bushfires for the first 48 hours of this policy”

A. Can the insurer then refuse Barb’s claim for bushfire damage to her home on the basis that there is no cover for bushfire for the first 48 hours after inception of cover?

The answer to this question can be complicated. If your claim has been rejected by a similar line of reasoning, you will want to consider the following issues:

• Did you obtain insurance over the phone?

• If so, did the consultant advise you of that particular exclusion, that you would not be covered for bushfire in the first 48 hours of your policy?

• If not, there is an argument that your insurer has breached their duty to inform you of this exclusion. (Sections 35 and 37 of the Insurance Contracts Act)
  

• NOTE: Even if your insurer sends you policy documents later which had this exclusion in it, there is still an argument that you were notalerted to this particular exclusion and that your interim contract (your policy while waiting for the policy documents and certificates of insurance to arrive) is not qualified by this exclusion.

• Did you obtain insurance over the phone?

• If so,
  

• Did the insurance consultant ask you any specific questions such as “are you, or any other persons to be insured by this policy, aware of any exceptional circumstances which are or may be a threat of loss or damage to the insured property?”

• If not, then the insurer is deemed to have waived compliance by you to make the disclosure unless they asked a specific question. Now see the next dot point. (s21A Insurance Contracts Act)

• If yes, was the threat of bushfire to your property something that you knew or could a reasonable person in the circumstances be expected to know?

• If upon answering honestly, your answer is no, then you have not breached your duty of disclosure and should be entitled to be covered.

 On these particular issues, the Insurance Ombudsman (FOS) has stated that

“the insurer...is not obligated to be “omnipotent” in acquiring knowledge of natural or potential natural disasters. However, the Panel does expect major insurers who insure without question, properties in bushfire prone areas to make some enquiries to protect their position, rather than passively expect their policyholders to demonstrate the same level of “omnipotence.” (Determination No: 203 08 17947)

It is also useful to note that had the telephone consultant appropriately questioned and verbally conveyed the 48 hour no bushfire cover clause, it may be more difficult to argue that cover should still be provided.

2. Is my tractor/car or my All Terrain Vehicle/motor bike covered for damage under contents insurance?

Many bushfires have left not only homes destroyed but have also damaged family tractors, farm bikes or other motor vehicles on the property.

In the case study above, if Barb and Leo’s car didn’t have its own separate fire insurance policies, separate from their home contents insurance, would Barb be able to successfully claim on her home contents insurance for the damage to her car?

Unless otherwise provided for in your policy, contents insurance will typically NOT cover motor vehicles, motorbikes, trailers and caravans. If you have separate fire insurance on these vehicles you should make a claim on those policies.

Remember though that each policy has its own specific wording, you must read yours carefully to determine whether damage to your tractor in a bushfire is covered. You can find this in the section that defines what contents are covered or not covered. One example of this could be:

“What contents are not covered:

     ...

     Motor bikes, trail bikes, mini-bikes...

     Motor vehicles, caravans, trailers and their attached accessories or spare parts”

PART 8                  Other Useful Tips

• The following tips and advice has been extracted from page 4 of the Insurance Council of Australia’s brochure entitled “Tips on General Insurance: Preparedness and Recovery.” A copy of this brochure can be obtained by contacting the Insurance Council of Australia on 1300 728 228.

• Make contact with your insurance company as soon as possible after the event to register your intention to claim and seek advice about the claims process under your policy.

• It will assist and may fast track the claims process if a detailed inventory (with photographs) is compiled, e.g., if any food has been spoiled.

• Do not be concerned if your insurance policies are lost or destroyed in a natural disaster. Insurance companies keep records electronically and only require the policyholder’s name and address in order to process a claim”

• Insurance policies vary. It is important to check with your insurer to determine whether the following options are available under your policy:

• The cost of recovering livestock and fence repairing after a natural disaster 

• Gathering evidence - When you feel up to it, start thinking about gathering evidence of your loss. This could be anything from working on a list of the contents lost, to taking photos once the area is safe to return to.

• If you have recently been affected by the 2009 Victorian Black Saturday bushfires, the ILS’s info sheet called “See our Important Information about the Victorian Bushfires” may also be of some assistance. It can be accessed on our homepage at http://www.cclcnsw.org.au 

• In response to the 2009 Black Saturday Bushfires, the Bushfire Insurance Unit of Victoria Legal Aid has released a useful list of frequently asked questions. This is published as a chapter in the Bushfire Legal Help Handbook. This book and it’s chapters can be accessed at http://www.bushfirelegalhelp.org.au/handbook.php

PART 9                  What can I do if my claim is refused and how do I raise a complaint?

For information on what to do if your home and/or contents insurance is refused, please see: What can I do if my home and/or contents insurance claim is refused?

For information on what to do if your motor vehicle insurance is refused, please see: What can I do if my car insurance claim is refused?

PART 10                Useful Sources

If you are a victim of the February 2009 Victorian Bushfires, please contact the Victorian Bushfire Legal Line on 1800 113 432 for all bushfire related enquiries including for legal advice. They also have a website which you can access at http://www.bushfirelegalhelp.org.au

If you have a question about claiming on your insurance policy or you have a dispute with your insurance company further down the track, you can call the Insurance Law Service on 1300 663 464 or the Financial Ombudsman Service on 1300 780 808.

If you are a tenant affected by the bushfires either from having your possessions burnt or your rental property damaged or destroyed, please contact a Tenants Union in your state or territory for tenancy advice. Alternatively you may contact Law Access on 1300 888 529 for a referral to your nearest Tenants Union.

PART 11                Do you have a bushfire enquiry but not really about the insurance side of things?

Do you have a mortgage or other loans? If you are paying off your home, you will be legally obliged to meet your mortgage repayments, even if your home has been destroyed or damaged by fire. Not paying your loan pending the outcome of an insurance claim will result in additional interest and enforcement fees being added to your loan and may result in legal action. You should contact your lender immediately to ask for hardship assistance. Some lenders have already announced special measures being taken to assist customers affected by the fires including relief from repayments and other forms of assistance.

The insurer is also obliged to notify your financial institution about the claim (for example, where there is a mortgage over your home) under the General Insurance Code of Practice, but you must let the insurer know about the financial institution’s interest.

If you have other loans you cannot pay as a result of hardship you should also contact your lender. You may have a legal right to a hardship variation on your loan, or your lender could be obliged to work with you under an industry code of practice. However, special relief offered by some institutions may be more beneficial and you should explore that avenue first.

 For general information on hardship variations please click on the following links:

• Factsheet - Hardship variations on consumer loans 

• Sample Letter - Request for Hardship Variation

 If you cannot pay your loan and you cannot reach an agreement with your lender contact

• The Credit and Debt Hotline on 1800 808 488 for a referral to your nearest financial counsellor or for legal advice.

• For Victorian 2009 Black Saturday Bushfire victims please call the Bushfire Legal Line on 1800 113 432.

 If you are after help with other areas of law, the Bushfire Legal Help Handbook published by Victoria Legal Aid provides a guide to the law for people affected by the February 2009 Victorian bushfires. This handbook can be accessed at http://www.bushfirelegalhelp.org.au/handbook.php or by contacting Victoria Legal Aid themselves.

 Need some more help? For a list of additional resources, click here .