Flood confusion reigns in Queensland
Widespread consumer confusion following January’s floods in the Queensland township of Emerald has highlighted the need for a common industry definition of flood cover.
More than 2500 people were evacuated from their homes when the Fairbairn Dam overflowed and the central Queensland town flooded in mid-January.
Emerald Mayor Peter Maguire says many residents at a regional council meeting last week were initially unsure whether they were insured.
“They understood they were covered and found out they weren’t, and some others tried to get cover when the floods started,” Mr Maguire told insuranceNEWS.com.au. “There was some confusion… but a lot more people had flood insurance than we thought,” he said.
Insurance Council of Australia (ICA) GM Communications Paul Giles says industry representatives at the council meeting explained the benefits of standard flood wording.
“The meeting was also informed of moves for a common definition of flood, which is aimed at minimising incidents of confusion among policyholders as to the true extent of their flood cover,” he said.
Last month ICA applied to the Australian Competition and Consumer Commission for a voluntary common flood definition.
The Emerald region floods have so far prompted 1500 claims at an estimated insurable cost of $15 million in the Emerald area, according to ICA figures.
Suncorp spokesman Jamin Smith says the company has paid out 70% of its claims relating to the floods as it offers optional home and contents flood cover for direct clients.
“Of the claims that were rejected, customers purchased their policy or added the flood cover option as the events were actually unfolding, or they chose not to include the flood cover option on their policy,” he said.
More than 2500 people were evacuated from their homes when the Fairbairn Dam overflowed and the central Queensland town flooded in mid-January.
Emerald Mayor Peter Maguire says many residents at a regional council meeting last week were initially unsure whether they were insured.
“They understood they were covered and found out they weren’t, and some others tried to get cover when the floods started,” Mr Maguire told insuranceNEWS.com.au. “There was some confusion… but a lot more people had flood insurance than we thought,” he said.
Insurance Council of Australia (ICA) GM Communications Paul Giles says industry representatives at the council meeting explained the benefits of standard flood wording.
“The meeting was also informed of moves for a common definition of flood, which is aimed at minimising incidents of confusion among policyholders as to the true extent of their flood cover,” he said.
Last month ICA applied to the Australian Competition and Consumer Commission for a voluntary common flood definition.
The Emerald region floods have so far prompted 1500 claims at an estimated insurable cost of $15 million in the Emerald area, according to ICA figures.
Suncorp spokesman Jamin Smith says the company has paid out 70% of its claims relating to the floods as it offers optional home and contents flood cover for direct clients.
“Of the claims that were rejected, customers purchased their policy or added the flood cover option as the events were actually unfolding, or they chose not to include the flood cover option on their policy,” he said.