ASIC warns homeowners about insurance cash settlement risks - 7NEWS

Australia's corporate watchdog ASIC is warning homeowners about the risks of accepting cash settlements on home insurance claims, with a new report finding policyholders are increasingly being short-changed. Cash settlements place the burden of finding tradespeople, coordinating repairs, and covering cost overruns on homeowners, unlike traditional claims where insurers manage the entire repair process. The warning is particularly relevant for vulnerable people dealing with disasters, who may accept cash payouts without understanding the complexity and risks involved.