Severe Winds And Flooding - IFSO Scheme Urges Careful Action During Clean Up

With flooding in the South Island and damaging winds battering the Capital, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is reminding homeowners to take the right steps in the aftermath, to avoid issues with their insurance later on.

“The first thing to remember is to only start dealing with the clean up when it’s safe to do so. Then, when it’s safe, make sure you document everything before starting on the clean up. Take photos or videos of the damage and make a detailed list of affected items. Without proof – like photos or receipts – insurers can decline claims. A list on its own often won’t be enough,” says Karen Stevens, Insurance & Financial Services Ombudsman.

Making contact with your insurer before carrying out repairs is important too. “You are expected to do essential repairs to prevent further loss, but you should only do this after talking to your insurer, as insurers and homeowners don’t always agree on what counts as essential,” Stevens warns. “For example, getting rid of carpets or disposing of wind-damaged furniture may seem obvious, but always check with your insurer first. If in doubt – check it out.”

Stevens also says that acting early can make a difference. “Make your claim as soon as possible, and ask questions. There’s no such thing as a silly question when it comes to understanding your insurance. Check exactly what you need to do to make a claim,” she says.

Knowing your cover can help manage expectations during this high-stress time. “You need to understand whether your home is insured for full replacement or just a set amount (sum insured), and whether your contents are covered for replacement value or indemnity value – which factors in depreciation.”

“With vehicles, it’s important to know whether your car is insured for market value or agreed value,” says Stevens. “That will determine the amount you may receive if your vehicle is damaged by flooding or flying debris during a storm.”

The IFSO Scheme recommends the following steps after severe weather:

Document damage thoroughly before discarding anything.

Take photos or videos of all affected items.

Locate receipts and any proof of ownership where possible.

Contact your insurer early and ask questions.

Check with your insurer before making non-essential repairs, and only carry out urgent repairs needed to prevent further loss.

For those dealing with the aftermath, Stevens says a little knowledge can go a long way. “Understanding your cover and documenting damage properly can reduce stress and help get your claim sorted sooner, and avoid issues down the track,” she says.

The IFSO Scheme resolves complaints about insurance and financial services, and is independent, fair, and free for consumers. People can make a complaint to the IFSO Scheme at www.ifso.nz or by calling 0800 888 202.

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