A client in the process of purchasing a residential property in Queensland.

Just days before Tropical Cyclone Alfred was forecast to make landfall, the client had entered into a contract to purchase a new property. Insurance quotes had been prepared the week prior, but by Monday, news reports indicated a high likelihood of cyclone impact. Several insurers had already imposed embargoes, rendering many of the quotes invalid and leaving the client at risk of being uninsured.

Insurers often impose embargoes ahead of forecasted natural disasters, preventing new policies or changes to existing ones. These embargoes are designed to limit exposure to imminent claims but can leave property buyers vulnerable if insurance isn’t secured early.

Our team quickly identified an insurer that had not yet imposed an embargo and worked to implement cover early that week. However, the policy included a specific condition excluding cyclone-related damage within the first 48 hours of coverage – unless certain criteria were met, such as:

✔️ The insurance was taken out immediately after another policy expired without a break in cover

✔️ The insurance was taken out immediately after the risk passed to the purchaser

✔️ The insurance was taken out immediately after signing a lease or contract

Although settlement had not yet occurred, the client had signed the purchase contract, satisfying one of the conditions.

Following the cyclone, the property sustained damage. The client contacted us, and we promptly lodged a claim. The insurer initially pushed back due to the cyclone exclusion clause, but we successfully argued that the client met the condition by taking out the policy immediately after signing the purchase contract. The claim was accepted, and the client received the funds needed to complete repairs.

While we were able to help this client secure coverage and successfully lodge a claim, the outcome was fortunate given the timing and complexity of the situation. This case highlights the critical importance of acting early – don’t leave insurance decisions until the last minute. Engaging with a broker well before storm season ensures you have the right protection in place before embargoes and exclusions come into effect.

Timing is critical when securing property insurance in high-risk periods. Embargoes can appear suddenly, and policy conditions may be complex.