It’s become alarmingly apparent that many people who were affected by the Queensland floods did not have flood insurance for their homes.
Kim Lester of 666 ABC Canberra says, “It’s hoped the outpouring of government assistance and public donations will be enough to help people rebuild after the waters finally subside in these devastating floods, because while it may seem alarming that so few victims have flood insurance, it’s apparently not uncommon.”
Choice spokeswoman Ingrid Just told 666 Drive presenter Melanie Tait there is no standard definition for flood when it comes to insurance. Apparently in 2008 Australian insurance companies made a submission to the ACCC to decide on a standard definition for flood. However consumer legal groups fought the notion, saying it would be too difficult to recalculate existing insurance premiums.
Just said, “What we’re finding is that there are different classifications of definition and there are many insurers out there who simply don’t flood as part of their general options. The existing definitions generally come under the categories of flash flooding, inland flooding and storm surges or sea level rises.
Choice conducted a recent review of home and contents insurers. It found 19 of the 43 insurers offered flood insurance, five offered it as part of additional coverage and 19 didn’t offer it at all.
Just said consumers seeking insurance should not assume they will be covered for flood. They should obtain a flood map from their local government to check whether their house sits on a flood plain.
Please note Quotesonline Insurance News is an information service provided by third parties Insure 247 Australia doesn’t warrants the accuracy of any information contained there in, readers should make their own enquiry’s before relying on information in the stories Terms of Service