After a natural disaster, you may be targeted by ‘storm’ or ‘disaster’ chasers. They might claim to offer you quicker, cheaper, or specialised repair services, or to help with your insurance claim. Before you commit, pause and check that the quicker, cheaper service isn’t going to cost you more out of pocket.
Australia sees multiple natural disasters each year, across many types of weather events, costing billions of dollars. Beyond the financial cost is the emotional cost – and the combination can make you vulnerable to high pressure sales tactics from disaster chasers.
What is a disaster chaser?
If your neighbourhood is hit with a natural disaster such as a hailstorm, fire, flood or cyclone, you may find yourself receiving a knock on the door, calls or texts out of the blue, leaflets in your letterbox, and targeted online ads from disaster chasers.
They might offer to represent you with your insurer, to help you identify damage to your property, or to do the repairs for you.
They could be a disaster chaser – and dealing with them rather than going through your insurer (if you have insurance) could end up costing you more.
Don’t sign any agreement without reading it in full. You don’t have to agree to anything on the spot.
If you sign a contract with a disaster chaser, you have a 10-day cooling-off period. You can cancel the agreement simply by telling them that you want to cancel. You can tell them this in person, over the phone, by email, fax or post. Your insurer may also be able to help you with this.
Take the time you need to make decisions you won’t regret
If you have home insurance, it’s vital to speak to your insurer before doing any repairs.
Insurers often have preferred repairers and suppliers – if you engage a tradesperson outside their preferred list, you may have a higher out of pocket expense.
Your insurer can also arrange emergency repairs for you. This can include things like removing loose debris or installing a roof tarp. If you need emergency accommodation, ask your insurer if they can help you.
Most insurers will have simple online instructions to step you through what to expect when you make a claim.
Tips to spot a disaster chaser
Generally, the approach to you will be unsolicited – someone coming to your door, calling or texting you, a letter drop, or online ad. Watch out for anyone who:
- offers a ‘today-only’ deal
- says they can get repairs done quicker or much cheaper than legitimate companies
- asks you for money up front or to sign a contract immediately
- asks you to sign or do anything that prevents you from dealing directly with your insurer
They may even claim to be from your insurer – but remember that your insurer will not send someone to your house without telling you first. And someone working for your insurer will definitely not ask you for money.
If you’re in any doubt, ask to see the tradesperson’s identification, and check the details with your insurer. Confirm with them that the work the tradesperson will be doing is covered.
Visit the Insurance Council website to learn more about disaster chasers and what to look for.
Get the help you need
Recovering from a natural disaster can be a slow process. Don’t hesitate to make use of all the government, community, and financial services you need. Here are links to these resources in the webpages below.
Learn more about:
Preparing for a natural disaster
Dealing with a natural disaster
Recovering from a natural disaster
Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/dealing-with-natural-disasters/be-aware-of-disaster-chasers
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