Hailstorms caused almost $1.9 billion in damage in January 2020

Hail hitting houses and cars during storm season with large volume of insurance claims.

This time 12 months ago insurance companies shelled out $1.89 billion in property insurance claims related to hail damage on Australia’s east coast.

This is according to insurance data analysis organisation, PERILS which released its annual assessment of hailstorm losses this week.

The report, which includes home insurance and business claims, shows the ACT bore the brunt of the damage, with 56% of pay-outs going to the tiny territory. Victorians were next in the claims line (25%), followed by NSW (15%) and Queensland (4%).

Major hailstorm events from 19-21 January 2020 accounted for this huge collective payout. This wild weather and two other hailstorm catastrophes brought the total cost of accepted property insurance claims for hailstorm damage to $3.5 billion in 2020.

Does home insurance protect against hail?

This 2020 damage report might have you double checking your home insurance policy for hail damage – particularly if you live in Canberra where 6cm hailstones fell from the heavens last year. And with La Niña potentially igniting a more severe and lengthy storm and cyclone season this summer, it certainly can’t hurt to be prepared.  

The good news is most home insurance policies do cover storm damage, which usually includes hail.

The not-so-simple news is what’s included under ‘storm damage’ does differ from provider to provider and may be capped.

The best course of action is to carefully read through your product disclosure statement (PDS) and see if limits provide enough coverage for your home or if there are any exclusions you're concerned about.

For example, you’ll often find storm surges, which may damage electronics or power systems, aren’t covered. Same goes for flooding or other damages caused by high tides or tsunamis (which are often referred to as ‘actions of the sea’ in insurance policies).

Does car insurance cover hail damage?

If you have comprehensive car insurance, it’s likely your car will be covered for hail damage.

Again, there may be different limits and exclusions across providers, so be sure to check your policy and contact your insurance company if you want to confirm or change anything. 

Drivers holding third party car insurance generally won’t be able to claim against their policy for hail damage, as this lower tier of car insurance doesn’t account for damage to your vehicle. Third party fire and theft policies do protect your wheels against damage caused by fire and theft (as the name implies), but hail damage is still not part of the policy.

For the full insurance work-up, research the cover your car insurance provides during storm season then compare the home insurance policies below for hail and storm protection features.

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  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
      Optional Extra
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 25% Of Building Sum Insured
    New for old
    replacement
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  • Everyday Comprehensive Home and Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    No
    New for old
    replacement
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  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    No
    New for old
    replacement
    Replacement icon
    Yes
    Go to site
    Details
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
      Optional Extra
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 25% Of Sum Insured
    New for old
    replacement
    Replacement icon
    Yes
    Go to site
    Details

*Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

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