Many South East Queensland and Northern New South Wales residents still face an arduous recovery process after ex-Tropical Cyclone Alfred left widespread devastation. Attwood Marshall Lawyers Commercial Litigation Partner Charles Lethbridge looks back at the damage and answers some of the common questions people will now be asking as they deal with the damage to properties, loss of income, insurance companies, and business interruption.
At the beginning of March, most residents of South East Queensland and Northern New South Wales would have been glued to the news headlines or the Bureau of Meteorology website, obsessing over the predicted trajectory of ex-Tropical Cyclone Alfred (TC Alfred) and what its possible impacts were going to be.
After fears of a Category 2 or even Category 3 cyclone, TC Alfred was downgraded to a Category 1 as it hit the islands off Brisbane and then a tropical low before making it to the mainland. Despite this, the subsequent heavy rainfall and powerful winds caused widespread severe flooding, property damage and long-lasting power outages.
Touted as the biggest storm for the region in more than 50 years, more than 400,000 properties in South East Queensland were left without power. While the more urban suburbs were able to resume life as normal relatively quickly, rural communities, such as Tallebudgera Valley, were disconnected for over a week, struggling with debris-covered roads and damaged infrastructure.
As residents emerged from days of power outages, flooding and isolation, it was to a world of tree branches blocking roads (or fallen onto buildings), copious leaves and other rubble piling up at street drains. The region’s beautiful beaches were truly battered, unrecognisable amid dramatic coastal erosion. To top it off, the shelves of local grocery shops (when they did open) were bare, hampering efforts to replenish fridges and pantries.
The Insurance Council Australia (ICA) said that as of 17 March, insurers had received more than 63,600 claims for TC Alfred. The Council had previously declared TC Alfred an “Insurance Catastrophe,” meaning insurers must prioritise claims relating to the cyclone and subsequent storms from 28 February, dealing with the most severely affected residents first.
Suncorp (which includes Suncorp Insurance, AAMI, GIO, Shannons and Apia) said on 17 March that it had so far received over 20,700 claims related to the impact of TC Alfred, with the highest volume from Runaway Bay, Redland Bay and Beenleigh. Many claims were related to cyclone, wind and rain damage, and the insurer had already paid out over 6,000 food spoilage claims.
Zurich Australia said it is accelerating claims for property and motor vehicles related to the cyclone and subsequent storm. The insurer has also responded by offering emergency hardship payments, including financial assistance for life insurance policyholders involved in emergency response efforts.
The ICA said it’s too early to predict the total damage bill for TC Alfred. For context, 2023’s Tropical Cyclone Jasper – the last cyclone to hit Australia – cost $409 million from around 10,500 claims. However, the 2022 floods in the Northern Rivers area of NSW remain the costliest insured event in Australia, with $6.4 billion in insured losses across over 245,000 claims.
FAQs: What you need to know
Will my insurance cover cyclone damage?
Customers must clarify with their insurer whether their home and contents insurance policies cover cyclone damage. Many policies exclude flood damage unless it is specifically added. In addition to talking to their insurer, they should closely examine their product disclosure statement.
How to make a claim?
Affected residents should:
- Act quickly and contact their insurer as soon as possible,
- Document all damage with photos and videos to support their claims,
- Write an itemised list of damaged or lost property, including receipts to prove their value if available,
- Speak to their insurer before attempting or authorizing any building or repair work as their policy may not cover it, and
- Keep records of all communication with their insurer, claims officers or investigators to avoid disputes.
What if I live in a community title scheme (body corporate), and my property is damaged?
If a property is part of a community title scheme, then the body corporate is responsible for building insurance for its community and organising repairs. Residents are responsible for obtaining home and contents insurance to cover the internal property and belongings.
Following a severe weather event, if property damage has occurred, it is important to understand which policy the damage will be covered by – is it home and contents (internal) or the body corporate building insurance?
If property has been damaged and it involves the building (i.e. roof, gutters, walls, doors, ceilings, common area facilities, elevators, fences, pergolas, balconies, etc.), the first step is to document all the damage with photos and videos and contact the body corporate to notify them.
The body corporate manager will arrange for someone to visit the property and assess the damage, providing a report to the body corporate committee to determine what repairs are necessary and are covered under the insurance policy.
It’s important to note that items such as curtains, blinds, carpets, dishwashers, fridges, and floating floors, are generally excluded from strata building insurance. These items should be covered separately under each lot owners’ home and contents insurance.
If you have damage to both building structure and internal items, you may need to make two separate claims to rectify the damages.
What if my insurer delays or rejects my claim?
An insurer must respond to your claim within ten business days of receiving the claim. If the insurer stalls or denies your claim unfairly, you can complain to the Insurance Code Compliance Committee online, via email, or over the phone. For more information, click here.
If this is unsuccessful, you can also refer the matter to the Australian Financial Complaints Authority (AFCA).
Don’t be afraid to challenge the claims officer on what your policy covers. Try negotiating if they undervalue your claim or offer you an amount less than expected. Disputes can also arise over how insurers manage the builders and assessors they send for emergency repairs – particularly if they failed to fully inform you of the terms or did not give you the option to take a payout and hire your own contractors, for example.
If your claim is denied, it is important to seek expert legal advice to understand your rights and what options may be available to you.
Read more about claiming insurance after storm damage here.
What if my business suffered losses as a result of TC Alfred?
Most businesses have business interruption insurance (BI) to protect their business from loss of income or additional expenses should a significant insured event disrupt its operations.
Business interruption insurance was relied on by many businesses during the COVID-19 pandemic, after being forced to close their doors for many months.
If you need to make a business interruption claim, you will need to gather the necessary financial information to support your claim. Some of the documents that will be required include BAS lodgements, profit and loss statements for the financial year, quarter and month if available, weekly trading figures, payrolls costs, lease agreements, and details of when the business was closed and why, just to name a few.
It’s important to start gathering all the necessary financial information and get your claim underway with the insurer as soon as possible.
What disaster relief payments are available?
Australian Government Disaster Recovery Payment: A lump sum payment for major damage to your home or assets, injury or loss of life. Available in Fraser Coast, Gold Coast, Redland City and Logan. The deadline for making a claim is 10 September 2025.
Disaster Recovery Allowance: A short-term (13-week) payment for those who lost income due to the cyclone. It covers residents in Brisbane, Fraser Coast, Gold Coast, Gympie, Ipswich, Lockyer Valley, Logan, Moreton Bay, Noosa, Redland, Scenic Rim, Somerset, Southern Downs and Sunshine Coast. The deadline for applying is 8 September 2025.
At a state level, Queensland is offering grants including:
- Emergency Hardship Assistance,
- Essential Services Hardship Assistance,
- Essential Household Contents Grant,
- Essential Services Safety and Reconnect, and
- Structural Assistance Grant.
New South Wales is offering disaster relief grants for low-income, uninsured residents and concessional loans to small businesses and not-for-profit organisations in affected areas.
Attwood Marshall Lawyers – supporting people through challenging times
Our firm has extensive experience assisting clients in the aftermath of natural disasters, most recently for the Christmas storms of 2023 and the Lismore Floods of 2022.
If you are involved in a dispute with your insurance provider or body corporate over your policy or believe your insurer has unfairly denied liability for your claim, contact our friendly team to obtain preliminary legal advice about your rights and find out what options are available.
Please contact our Commercial Litigation Department Manager, Georgia Trapp, on direct line 0498 499 122, email gtrapp@attwoodmarshall.com.au or free call 1800 621 071 any time.
