Consumers warned to check flood cover
Consumer group Choice is urging consumers to check their insurance policies to see what type of flood they are covered against.
The warning comes after severe flooding in Mackay in February led to claimants discovering discrepancies in their cover, with some homes covered for flash flooding and others not.
In its annual home and contents insurance report, Choice has found that while rainwater run-off is covered by most policies, cover for flash flooding is only included in around two-thirds of policies.
Flooding when a river overflows due to heavy rain upstream is only covered by 50% of insurers.
The report finds average price differences of up to $350 a year for defined events and $410 for accidental damage policies.
According to the Insurance Council of Australia (ICA), river flooding now makes up a third of all house insurance claims related to natural disasters.
Choice Media Officer Elise Davidson says anyone living in one of the 170,000 Australian homes considered to be in a high-risk flood area may have problems getting flood cover or be charged a surcharge of anywhere from 30% to 1000% of their premium.
Suncorp personal insurance spokesman Rob Whelan told insuranceNEWS.com.au flood cover isn’t a black and white issue and is more complicated than Choice implies.
He says Suncorp’s companies have a “multitude of policies”. GIO offers flood cover as an optional extra, protecting against flooding from creeks, rivers, dams and canals, while AAMI’s home building policy for owner-occupiers does not cover flood. And while APIA offers comprehensive flood cover as part of its standard home insurance cover with no extra premium, there are restrictions depending on location.
Mr Whelan says stormwater run-off is covered by all Suncorp policies.
The warning comes after severe flooding in Mackay in February led to claimants discovering discrepancies in their cover, with some homes covered for flash flooding and others not.
In its annual home and contents insurance report, Choice has found that while rainwater run-off is covered by most policies, cover for flash flooding is only included in around two-thirds of policies.
Flooding when a river overflows due to heavy rain upstream is only covered by 50% of insurers.
The report finds average price differences of up to $350 a year for defined events and $410 for accidental damage policies.
According to the Insurance Council of Australia (ICA), river flooding now makes up a third of all house insurance claims related to natural disasters.
Choice Media Officer Elise Davidson says anyone living in one of the 170,000 Australian homes considered to be in a high-risk flood area may have problems getting flood cover or be charged a surcharge of anywhere from 30% to 1000% of their premium.
Suncorp personal insurance spokesman Rob Whelan told insuranceNEWS.com.au flood cover isn’t a black and white issue and is more complicated than Choice implies.
He says Suncorp’s companies have a “multitude of policies”. GIO offers flood cover as an optional extra, protecting against flooding from creeks, rivers, dams and canals, while AAMI’s home building policy for owner-occupiers does not cover flood. And while APIA offers comprehensive flood cover as part of its standard home insurance cover with no extra premium, there are restrictions depending on location.
Mr Whelan says stormwater run-off is covered by all Suncorp policies.