All Topics / General Property / Don’t know where this belongs

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  • Profile photo of ActTodayActToday
    Participant
    @acttoday
    Join Date: 2003
    Post Count: 232

    This is somerthing that we need to be aware of so it doesn't happen to us in the future.

    I live in Toodyay, which most of you would be aware, has been devastated by fire with the loss of 38 homes.  This fire is nothing like as devastating as the fires in Victoria last year but even so it has rocked me like I would never have imagined.  This fire was not the result of an act of nature but due to a Western Power pole falling to the ground and igniting grass, as would happen, on a fire danger day rated as "catastrophic" I don't know if this is a new level of rating but I have never heard this rating before.  Temperature here that day was 45C.  Many that I know personally have lost homes, pets and livestock and now "the good bit."  One lady I know has been told her insurance payout will go to her Bank as they no longer have security over the property.  To rebuild she must reapply for a housing loan but thankfully she has the income to support this.  One family, who run a small dairy and have six kids, didn't lose their home but lost part of their herd, fencing, sheds etc.  How are these people supposed to be able to afford to rebuild when their income source has gone?  There are many in similar situations and if you want to make a donation to this or any other disaster in the future, remember that cash is what is needed most.  There are plenty of clothes and food but as yet the people have no permanent accomodation so nowhere to store things.  My warning is to be sure that you have your homes and investment properties adequately insured and that you take into account what would happen if you had to rebuild and the Bank had taken your insurance payout.

    Judith

    Profile photo of sonyasalsonyasal
    Member
    @sonyasal
    Join Date: 2008
    Post Count: 421

    Hi Judith

    My heart goes out to you and all the people affected by this fire. I

     was surprised the other day when I was talking to my property insurer as I insured a new IP. I discovered that you don't recieve the amount of money that the property is insured for for you to pay out your loan and then to do with as you wish. They told me that they control the money for the house to be rebuilt and if it doesn't reuqire the full sum insured amount then they don't pay any more. I naively thought that like car insurance you simply recieved the money for sum insured and then use that money to pay off any debt and build a new house. The insurance company only allows a house of similair construction. So you can't build a better house even if the insured amount was enough to finance it.

    Sonya

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