Consumer advice website MoneySmart is urging homeowners to review their insurance following the Bureau of Meteorology’s forecast of higher than normal cyclone activity for the cyclone season 2011/12.

The bureau says Australia has an 80% chance of more than the long-term average number of cyclones for the period. The long-term average is 12.

After last year’s flood and cyclone events and the resulting insurance claims, MoneySmart – which is operated by the Australian Securities and Investments Commission (ASIC) – warned policyholders to put their insurance cover under the microscope.

ASIC Senior Executive Leader Consumers, Advisers and Retail Investors Delia Rickard urged homeowners to “see what events you are covered for and what is excluded – for example, damage from flooding”.

She also warns policyholders to “read the fine print and ask as many questions as possible when comparing insurers”.