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A violent storm that swept the state last month felled trees and destroyed houses.Image: Wayne Taylor
As the full impact of the devastating storm last month has become apparent, homeowners in Victoria have been blinded by huge clean-up costs worth tens of thousands or hundreds of thousands of dollars.
In the hardest-hit areas of the Dandenong Ranges, Trentham and Macedon Ranges, heartbroken owners found that they had to pay for the removal of felled trees because their insurance was not covered.
After high winds ravaged parts of the state, uprooting trees, destroying large tracts of forest, destroying power lines and cutting off thousands of people, the estimated damage has reached 182 million U.S. dollars.
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According to reports, properties in the Dandenong Ranges, Macedon Ranges and Trentham have been extensively damaged.Image: Jason Edwards
According to the Insurance Commission of Australia, there are approximately 20,000 insurance claims, but Keatings real estate director John Keating said many families were shocked to find that they were not protected.
This is because a tree that fell but did not damage the house or other structure is not covered by most insurances, unless the policyholder pays extra for storm damage.
As a result, vendors who sold properties a few weeks before the storm faced huge cleanup costs and scrambled to clear uprooted trees through settlements.
If homeowners do not have storm damage insurance, they may have to bear huge cleanup costs.Image: Jason Edwards
Mr. Keating said that buyers of properties that have not yet been delivered and whose houses have been seriously damaged may have reasons to withdraw from the contract and refund the deposit.
Mr. Keating said: “The seller is obliged to hand over the property at the time of settlement in a state similar to that on the day of their inspection.”
“Unless the supplier has specific storm damage to the garden or other trees on the land, the insurance may not cover it, and the supplier is obliged to clean up the mess before handing over.”
Keatings Real Estate Director John Keating said many buyers were shocked to discover that their construction insurance did not cover felled trees that did not fall on their homes.Image: Wayne Taylor
First National Real Estate Ranges director Mick Dolphin estimates that at least half of the properties in the Dandenong Ranges were damaged by winds, fallen trees and floods caused by the storm that occurred on June 9.
More than 120 homes are uninhabitable, and he said he expects a large influx of properties into the market in the spring because many homeowners who are unable to repair uninsured damage will switch to sell.
“They didn’t want to sell it, but now they contact me and say,’I think I need to sell this piece of land with damaged houses,'” Mr. Dolphin said of a homeowner.
Buyers who did not purchase a house when the house was severely damaged may also have reasons to withdraw from the sales contract.Image: Wayne Taylor
Mr. Keating said that each tree that is felled can cost up to $5,000 to demolish, and some properties in the Macedonian Mountains have more than 100 trees.
He predicts that if the damage is not resolved, some vendors may be trapped in properties that they have difficulty selling.
Mr. Dolphin stated that the shortage of materials and trade related to Covid-19 could lead to massive blowouts within the time frame of the project to repair or rebuild houses.
“A lot of people will not build a house in two years,” said Mr. Dolphin.
An ICA spokesperson said that if the property has been sold but no settlement has taken place, it is up to the buyer and seller to decide who should be responsible for the damage.
The storm of June 9 destroyed forests, destroyed power lines, and cut thousands of people without electricity.Image: Alex Koper
“There are a series of insurance policies that can cover damage to the property by the storm. Owners should conduct due diligence to understand the specific risks of their property and find a policy that suits their personal circumstances,” the spokesperson said.
“Most construction policies will cover property damage caused by fallen trees. In addition to property damage, some available premium policies may cover storm-related tree collapses that do not cause direct property damage. If in doubt, residents should contact Talk to their insurance company.”
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