Small cyclone damage can still leave households out of pocket as cyclone season gets underway
12 November 2026
New Australian Reinsurance Pool Corporation (ARPC) claims analysis* shows that for almost three in ten paid residential cyclone claims, the policyholder’s insurance excess was at least as large as the amount ultimately paid by their insurer.
The analysis also found the average residential building claim for cyclone damage was around $8,000.
As the 2026–27 cyclone season gets underway, ARPC is encouraging households in cyclone-prone communities to prepare early and take practical steps that may help prevent or reduce damage before severe weather strikes.
ARPC Chief Executive Officer Dr Christopher Wallace said the findings showed cyclone resilience was not only about preventing catastrophic losses.
“When people think about cyclone damage, they often think about major structural losses, but smaller damage can still leave households with a significant out-of-pocket cost,” Dr Wallace said.
“For almost three in ten paid residential claims we analysed, the policyholder’s excess was at least as large as the amount ultimately paid by their insurer.
“That reinforces the value of taking practical steps before a cyclone to help prevent or reduce damage. Resilience does not always mean major or expensive upgrades – smaller measures can also make a meaningful difference.”
Dr Wallace said the start of cyclone season was a timely opportunity for households to check their property, understand their insurance cover and know what excess would apply if they needed to make a claim.
“Preparation is most effective before a cyclone is approaching,” he said.
“Simple actions such as checking the condition of roofs and gutters, securing loose outdoor items and addressing areas vulnerable to wind or water damage can all form part of preparing a home for severe weather.”
Recognised resilience upgrades can also reduce the cyclone reinsurance premium an insurer pays to the Cyclone Reinsurance Pool, with insurers able to pass that saving through to policyholders.
“If you have completed resilience upgrades to your home, let your insurer know and ask whether they may qualify for a cyclone-related premium discount,” Dr Wallace said.
Since the Cyclone Reinsurance Pool commenced in July 2022, ARPC has paid more than $1 billion in cyclone claims following declared cyclone events across Australia.
The Cyclone Reinsurance Pool provides reinsurance for eligible Home, Contents, Strata and SME insurance policies covering cyclone and cyclone-related flood damage and is designed to improve insurance affordability and availability in cyclone-prone areas.
ARPC encourages households to follow preparedness advice from their local emergency services and relevant authorities throughout the cyclone season.
To learn more about practical steps you can take to improve your property’s cyclone resilience, visit the ARPC Cyclone Resilience page.
* Average claims figures are based on 92 per cent of residential building claims received by ARPC.
For media inquiries, please contact Alexander Drake, Head of Public Affairs and Communications on (02) 8223-6777 or [email protected].