Insurers are urging householders in south-east Queensland to identify and report disaster chasers to government authorities or police.
Within hours of Saturday's hailstorm, disaster chasers had started door-knocking damaged homes, seeking to exploit vulnerable householders.
Insurance Council of Australia CEO Andrew Hall said: "Disaster chasers emerge soon after a natural disaster and target householders who have been affected. They leave many families, elderly and disabled Australians much worse off, with large bills and homes that remain badly damaged.
"Insurers have received reports that disaster chasers are already active in the areas worst-affected by the recent hailstorms in south-east Queensland."
Many disaster chasers offer urgent inspections or repairs for cash but leave the work either poorly done or not completed. They may not have a building licence, trade qualifications, professional indemnity insurance or an ABN. Some have been known to use standover tactics to demand money. They may falsely claim they have been sent by an insurer.
Some disaster chasers operate as small businesses, such as roofers. They pressure the householder to sign a contract on the spot and may promise that an insurance company will pay for all work. However, insurers will usually not pay for unnecessary or cosmetic repairs and will only pay for approved work that is covered by the policy. This often leaves the customer with an inflated bill that they are forced to pay, or a large fee or commission.
"Disaster chasers are a menace and are becoming bolder," Mr Hall said.
"Identifying disaster chasers and reporting them to the relevant authorities will help bring them to account. And if they threaten, harass or intimidate anyone, police should be notified immediately."
Tips for identifying and dealing with a disaster chaser:
- An insurer will not send a tradesperson or builder to your home without notifying you and providing you with details
- Speak to your insurer before agreeing to any repairs or rebuilding work to make sure your insurer will cover it
- A tradesperson or builder who is working for your insurer will not ask you for money
- If in doubt, ask for identification such as a builder's licence or driver's licence, and ring your insurer to check
- If you sign a contract with a disaster chaser, you have a statutory 10-day cooling-off period. Your insurer can help you end the relationship with the disaster chaser
To report an unlicensed builder or tradesperson, contact the Queensland Building and Construction Commission: 13 93 33
To report a doorknocker or scammer or for advice on statutory cooling-off period contact the Queensland Office of Fair Trading: 13 74 68
