Unlike Australia, US insurers’ make-safe makes sense

For protecting storm-damaged properties, Aussie invention Stormseal provides far superior weather resistance and is much more cost-effective than tarpaulins. But Australian storm victims are still suffering under tarps because of a costly flaw in our insurance industry.

Stormseal heat-shrinks to wrap a damaged structure. Unlike tarps, it stays put and resists all weather until permanent repairs are made. Installed with ropes and sandbags, tarps leak, flap and fly away, requiring repeated replacement, causing further property damage and escalating insurance claims.

The Insurance Council of Australia acknowledges Stormseal’s benefits but can’t endorse third-party products.

Storm victims like Sally and Marg – two of thousands of Berowra residents impacted by a catastrophic hailstorm in December – know that tarps are harmful while Stormseal brings peace of mind.

American roofers know that Stormseal is the smart choice. They formed a long queue to register their interest in using Stormseal, at the International Roofing Expo in Nashville last week.

Australian roofers know it too, yet they’re still mostly using tarps. Why?

Because there’s a critical difference between the Australian and US insurance industries.

In both countries, insurance companies contract roofers or builders to ‘make-safe’ storm-damaged properties.

In the US, the contractor receives a single make-safe payment from the insurance company. Which means the contractor is highly motivated to do the job right and do it once, because if they’re called back to replace a failed tarp, it’s at their own cost. American insurance contractors are flocking to use Stormseal because it’s better for their business, as well as for storm victims.

In Australia, the contractor is paid by the insurance company every time they’re called back to make a single property safe. The contractor is incentivised to return repeatedly to the same property whenever a tarp fails, because they’rerewarded withan additional payment. Not only does this ultimately increase the cost of Australian insurance premiums, but it also increases the suffering of storm victims.

This seems senseless, so why aren’t Australian insurance companies insisting that their contractors switch to Stormseal? Does it make any sense to keep tarping? Let’s take a closer look…

What’s the real cost of tarping a storm-damaged 150m²home in Australia?

Polytuf Xtreme tarpaulin 6.1mx9.1m x 3 @ $275	$825
Sandbags and ropes	$250
Safety roof rail	$1,500
Labour	$1,200
Tarp replacements x 4 (average) @ $800	$3,200
Subtotal	$6,675 or $44.50/m²
Additional property damage after the storm	$25,000
Suffering of residents	Beyond measure
Insurer and contractor call centre frustration	Beyond measure

With climate change increasing the frequency of severe storms, the mounting financial and social costs of using tarps to ‘make-safe’ is appalling to contemplate.