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Weatherproofing deadline challenges insurers

Insurers aren’t to blame for the slow pace of reconstruction in settlements south of Cairns devastated by Cyclone Larry in March, says the man heading up the recovery taskforce.

Retired General Peter Cosgrove says many residents are still waiting for their homes to be weatherproofed before the next cyclone season begins in November.

Builders are well into the reconstruction of most buildings in the affected area south of Cairns. But while work progresses slowly but steadily, there have been suggestions the insurers are lagging behind.

But General Cosgrove, Head of the Operation Recovery taskforce, says tradesmen employed by the insurers are working hard at making sure homes are ready for the cyclone season. However, he has called for a “doubling of effort” to meet the deadline.

He is quoted in a report in the Australian Financial Review saying that insurers have “competing problems” in ensuring repair work is up to standard without wasting money.

Suncorp has already settled more than 40% of the 7400 claims received after Larry, and is currently working on the remainder. So far more than $30 million has been paid on the claims with an expected total claims bill of $80-85 million.

“Australian insurance companies have put in a concerted effort to treat the disaster recovery as the major national insurance project,” General Cosgrove said.

Most insurers have said they intend to have all claimants’ homes weatherproofed before the wet season starts.