This fact sheet is one of a series that looks at the steps you can take to give yourself the best chance of fixing or replacing your property and belongings if they're damaged or destroyed in a natural disaster, such as a bushfire, flood or storm.
See Fact Sheet 18: Glossary for definitions of words and terms that are in bold text.
To find other fact sheets in the series go to www.InsuranceCheckup.tas.gov.au or visit your local Service Tasmania for an info pack.
When you don't think insurance is an option
People who suffer loss and damage in natural disasters generally receive support from family, friends, charities and other organisations and people within their communities. The Tasmanian and Australian Governments also provide emergency assistance and grants of money to help with immediate recovery needs. However, these grants are usually small, one-off payments, while the cost of replacing, repairing or rebuilding all that has been lost can be enormous.
It can be tough enough to manage your finances so that you're on top of everyday expenses, let alone extra costs – like home insurance or contents insurance – that don't seem as urgent or necessary. But if you think about how you would pay to repair or replace your belongings (or your home if you own it) after a natural disaster, an insurance policy does start to seem a bit more important. The situation could be even harder if you already owed money on what you had lost and had to pay out that debt before finding the money to start again.
See Fact Sheet 2: How insurance works, Fact Sheet 3: Risk and natural disasters, Fact Sheet 4: What it would cost you to replace everything you own, and Fact Sheet 5: Home insurance and contents insurance for more information.
Finding someone who can help
If you don't have a lot of money to throw around, but you want to be able to afford insurance, there are some people and places you can go to for help.
Financial counsellors
A really good place to start is with a financial counsellor who can give you free and confidential advice. A financial counsellor can help you if:
- you DO have insurance but are worried about telling your insurer that you can't afford to pay your premium when it's due or can't afford to pay the excess if you have made a claim
- you want to know about different insurance options that will suit your situation
- you want to find other services and programs that might be useful
- you want to learn some ways to get on top of any general money worries you have.
To find a financial counsellor, go to the National Debt Helpline website at www.ndh.org.au or call 1800 007 007.
Rural Business Tasmania
If you are a primary producer, fisherman, or operate a small rural business, you can also contact Rural Business Tasmania through their website at www.ruralbusinesstasmania.org.au or on 1300 883 276 for information about its financial counselling service and relief fund.
Financial counsellors for students
If you are a student at the University of Tasmania, you can book a free appointment with a financial counsellor through the Tasmanian University Union website at www.tuu.com.au/financial-counselling.
If you're on a low income
Some of the things you can talk about with your financial counsellor (or explore on your own) are described below.
Insurance policies designed for people on a low income
If you think you can't afford to insure your belongings, you might change your mind if you have a look at some insurance policies that have been specially designed for people on low incomes. Some general features of these policies are:
- affordable premiums
- no (or low) excess
- flexible payments, e.g. annual, monthly or fortnightly
- using Centrepay to manage payments if you are receiving a Centrelink benefit.
Keep in mind that you may need to meet eligibility criteria and there may be limits on the amount and type of cover you can obtain.
You can find out more on the Good Insurance page under What We Do on the Good Shepherd Microfinance website at www.goodshepherdmicrofinance.org.au.
Insurance for single items
Single-item insurance is an alternative to traditional contents insurance. You can choose to insure individual items rather than everything you own. This type of insurance also comes with flexible payment options.
You can find out which insurers offer single-item insurance using the Insurance Council of Australia's free Find an Insurer service at www.findaninsurer.com.au (see Fact Sheet 13: Finding and comparing insurers and insurance policies).
No-interest loans for important items and services
NILS is a no-interest loan program for people on low incomes. If you're eligible, you can get a loan to help you buy essential items and services, such as:
- household items (e.g. fridge, washing machine)
- education items (e.g. computer, textbooks)
- medical and dental items (e.g. mobility equipment, dentures)
- car care (e.g. registration, repairs)
- refugee family reunion (e.g. airfares, visa fees)
- family violence support (e.g. removal costs and security equipment)
You can find out if you're eligible for a NILS loan by answering a few questions on their website at www.nilstasmania.org.au or you can phone 1300 301 650 for more information.
You can also get more information and help with a NILS loan through some of the 35 Neighbourhood Houses and Community Centres in Tasmania. To find a centre near you, check the Neighbourhood Houses Tasmania website at www.nht.org.au or phone 03 6228 6515.
Learning how to manage money
There is plenty of free support out there if you are tired of worrying about money and would like to improve your money-management skills:
- The Australian Government has a Managing Money website full of tips and tricks to help you manage your money at different stages in your life. Search for "managing money" at www.servicesaustralia.gov.au.
- The National Debt Hotline has a lot of useful information about how to solve some common money problems. Check www.ndh.org.au or call 1800 007 007.
Resources
For general information, and for calculators and other tools to help you manage your own insurance:
- Understand Insurance: www.understandinsurance.com.au
- Find an Insurer: www.findaninsurer.com.au
- Money Smart: www.moneysmart.gov.au
Important notice
This fact sheet gives you basic and general information only. It does not cover every situation or everything you may need to know about insurance. It does not take into account your personal circumstances. Make sure you carefully read Key Facts Sheets and Product Disclosure Statements. Ask your insurer as many questions as you need in order to understand how your insurance policy will work for you. Use other tools available to you and seek professional advice if needed.
Information in these fact sheets has been drawn from a number of publicly available Government and non-Government resources.
This project has been jointly funded by the Commonwealth and Tasmanian Governments under the Disaster Recovery Funding Arrangements.