Ex-Tropical Cyclone Alfred has become one of Australia’s major recent insurance events, with reported insured losses above A$1.4 billion. The practical point for households is simple: storm damage, rainwater entry and flood damage are treated differently by insurers, so the wording in your Product Disclosure Statement (PDS) matters. If your claim is still open, ask your insurer for clear written reasons for any delay, exclusion or cash settlement offer.

What has changed since Alfred

Ex-Tropical Cyclone Alfred affected parts of south-east Queensland and northern New South Wales in March 2025, with claims involving homes, contents, vehicles and businesses. The Guardian reported that Ex-Tropical Cyclone Alfred cost households and businesses more than A$1.4 billion in claims, citing the Insurance Council of Australia’s catastrophe reporting (The Guardian, 2025).

That figure does not mean every damaged property was fully insured. The Insurance Council of Australia warns that underinsurance and non-insurance can leave households exposed after extreme weather, and says affected people should contact their insurer as soon as they are safe after a disaster (Insurance Council of Australia, 2026).

What your policy may cover

For home and contents insurance, the key distinction is often between storm, flood, rainwater run-off, storm surge and gradual damage. Many policies cover storm damage, such as a roof damaged by wind, but flood cover can be optional, excluded or subject to special terms. Read the PDS for the exact definitions, not just the policy schedule.

For car insurance, comprehensive cover may respond to storm, flood or falling tree damage, subject to the PDS and exclusions. Third party property cover usually does not cover damage to your own car. If your vehicle was written off, check whether your policy is based on agreed value or market value.

ASIC MoneySmart’s insurance guidance explains that insurance is designed to help protect against financial loss, but the cover, exclusions and claim process depend on the specific policy (ASIC MoneySmart, 2026). For Alfred related claims, that means the PDS and Target Market Determination (TMD) are not paperwork to skim. They are the documents that tell you what the insurer agreed to cover.

What affected policyholders should do now

If your claim is still active, keep a dated claim file. Save photos, repair quotes, invoices, assessor reports, emails, call notes and temporary accommodation receipts. Ask your insurer whether it needs any further evidence before assessing your claim.

Read also: Why Some Homes Are Becoming Uninsurable for Flood in Australia

If the insurer offers a cash settlement, ask whether it includes demolition, debris removal, professional fees, temporary accommodation, contents, make safe work and GST where relevant. A low cash settlement can leave you short if building costs have moved since the event.

Do not authorise permanent repairs before your insurer confirms what is needed, unless urgent work is required to make the property safe. If urgent repairs are needed, take photos first and keep invoices.

If your claim is delayed or declined

Ask the insurer for its decision in writing, including the policy clause it relies on. If you disagree, use the insurer’s internal dispute resolution process first. If the issue is not resolved, AFCA can consider eligible insurance complaints after you have first complained to the insurer (AFCA, 2026).

Common dispute points after Alfred may include whether damage was caused by flood or storm, whether maintenance exclusions apply, whether temporary accommodation is covered, and whether a settlement amount is enough to reinstate the property.

Next step

Read your PDS, TMD and current claim correspondence side by side. If anything is unclear, ask your insurer to explain it in writing before you accept a settlement or withdraw a complaint.

General advice warning

This article is general information only. It does not take into account your objectives, financial situation or needs. Before acting on it, consider whether it is appropriate for you, read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD), and consider obtaining personal advice from a licensed adviser. Cover, exclusions and availability vary by insurer and by state or territory. For legal, tax or complex dispute questions, consider speaking with a solicitor, registered tax agent or licensed insurance adviser.