Labor’s federal emergency services spokesman Mark Dreyfus sparked a war of words with the insurance industry following a visit to Winmalee on Thursday.
Mr Dreyfus drew attention to underinsurance among homeowners following the 2013 Blue Mountains bushfires at a campaign stop with Labor candidate for Macquarie, Susan Templeman.
A media statement released after the visit said “insurance companies have failed to provide adequate or appropriate advice to homeowners to upgrade their insurance cover accordingly”.
“I call on the Abbott-Turnbull government and Emergency Services Minister Michael Keenan to work with insurance companies now to ensure that victims of bushfires do not face the same underinsurance problems that we are now seeing in Winmalee,” he said.
“Further clarity from insurers is clearly needed. It is very important that people who live in bushfire zones are fully aware of the level of cover they need, should the worst occur.”
But the Insurance Council of Australia accused him of “blaming insurers for the underinsurance problem” that emerged after the 2013 Blue Mountains bushfires – a claim it said was “unfounded”.
“It is primarily the responsibility of governments to explain to constituents the consequences of changes to laws or regulations that they enact. The rezoning of bushfire-prone land is carried out by local governments in consultation with state and territory governments. Insurers are typically not informed or consulted about the process, and often do not have access to the data used by councils to inform their decisions,” said an Insurance Council of Australia spokesman.
“Despite this, the ICA and its members have consistently highlighted the prevalence of underinsurance in the community, and the financial risk it poses to all Australians. This is done through such means as interviews, community forums, media releases, advertising campaigns, blogs and social media posts.
“Insurers continually urge policyholders to review their insurance cover to ensure it is adequate for their needs.”
But Labor’s candidate for Macquarie, Susan Templeman – who lost her own home in the Blue Mountains bushfires – said the insurance companies have not done enough on the issue.
“Many homeowners choosing to rebuild have faced the problem of underinsurance,” she said. “Building requirements introduced by state and federal governments to promote safety in areas at high bushfire risk have increased the cost of rebuilding, but insurance companies have failed to provide adequate or appropriate advice to homeowners to upgrade their insurance cover accordingly.”
