Storm, hail and cyclone claims in Australia: how assessor fees work

The scope of a storm engagement

For a storm or hail claim, the assessor starts by checking what your policy covers: storm, rainwater, hail, cyclone, flood, actions of the sea, and limits on fences or pools. They inspect the property, photograph damage, often get on the roof or commission a roofer's report, and gather Bureau of Meteorology data for your location.

They then prepare a scope of works and costing, usually supported by independent builder or roofer quotes, and compare it with the insurer's scope. Most of the effort goes into rebutting maintenance or wear-and-tear arguments, adding missed items and negotiating the price. On cyclone claims, compliance with regional building standards and the logistics of remote repairs add further work.

Is an assessor worth it for a small storm claim?

Not always. If the insurer accepts the claim and the scope looks complete, paying a percentage fee may not add value. Assessors become more relevant when the insurer declines on maintenance grounds, when the scope omits internal damage, or when roof replacement versus repair is at stake. For small claims, a one-off fixed-fee review of the insurer's scope is often the most economical option.

Indicative amounts, to be checked with each expert.

Indicative fee table for storm and cyclone claims

There is no official scale of fees for policyholder assessors in Australia. The table on this page shows an indicative order of magnitude observed in the market, not a regulated or binding scale. As usual, percentages tend to decrease as claim values rise. Amounts are shown excluding GST.

Fee models you may be offered

After a widespread storm, many firms advertise their services. Comparing offers is easier when you know the main structures.

Hail events in major cities can create a surge of claims in a single afternoon. In that context, some firms offer standardised packages for roof claims: a fixed inspection fee, a roof report and a percentage only if negotiation is needed. These packages can be good value, provided the scope of each stage is written down and you can stop after the report if the insurer accepts it.

• Percentage of the total settlement, the most widespread model
• Percentage of the increase over the insurer's original offer
• Success fee on a declined claim, payable only if the decision is reversed
• Fixed fee for a scope review or roof report
• Hourly rates for technical advice or expert reports
• Minimum fees, disbursements for roofers or engineers, and GST of 10 percent

Policy reimbursement of your adviser's costs

Home policies generally do not reimburse an assessor you appoint yourself, although they often pay reasonable costs of emergency repairs and preventing further damage, such as tarping. Commercial property policies may include a claims preparation costs extension, reimbursing professional fees for preparing the claim within a set limit and subject to conditions.

Strata buildings in cyclone regions often face large claims. The owners corporation should check whether its policy includes claims preparation cover before appointing an assessor, and agree the fee basis in a committee or general meeting resolution where required.

Remember the distinction between the cost of preparing a claim and the cost of mitigating the damage. Tarping, emergency make-safe work, tree removal from a dwelling and drying are normally part of the claim itself and should be claimed in full. Your assessor's fee is a separate matter, and a fair engagement letter should state clearly whether it is calculated on those emergency items too.

Examples: hail damage to a full cyclone loss

A suburban home with hail-damaged skylights, some roof tiles and water-stained ceilings might claim 25,000 AUD. A 12 to 15 percent fee would mean 3,000 to 3,750 AUD before GST. A fixed-fee scope review at a lower cost may be more sensible.

A house whose metal roof must be replaced after hail, with internal ceiling and insulation damage, could have a claim of 140,000 AUD. An indicative 8 to 10 percent gives 11,200 to 14,000 AUD before GST, which may be justified if the insurer initially offered only partial repairs.

A strata complex in the tropical north seriously damaged by a cyclone, with a claim of 4,000,000 AUD, would usually negotiate bespoke terms, perhaps 2 to 3.5 percent, with caps and fees paid in step with progress payments.

Price factors in storm and cyclone claims

Roof access, heritage tiles or discontinued materials, disputes about maintenance, the need for engineers, and remote locations all increase workload. After a catastrophe event, high demand for builders and rising prices may lengthen the engagement. Claims involving both storm and flood cover can become more complex because each cover may have different limits and exclusions.

Small details can also matter. A roof that is steep, high or fragile may require scaffolding or specialist access just to inspect it, and that cost is often passed on as a disbursement. Ask in advance who arranges and pays for access equipment.

Before you sign

Take time to compare at least two written proposals. Confirm the firm's licensing for claims handling services and ask who will handle your claim. The engagement letter should set out the fee base, rate, minimum, disbursements, GST, what is owed if the claim is declined or you terminate, and whether payment is taken directly from the settlement.

Be wary of door-to-door canvassers after storms and of any promise of a guaranteed new roof or a set settlement amount. A reputable assessor will give honest advice about whether their involvement is likely to change the outcome.

Storm and cyclone claims vary widely, so the right fee arrangement depends on the size and complexity of your loss. Compare proposals carefully and use the storm and cyclone guide on expertdassure.com to understand the claim process.