“Scare stories” about flood terminology are discouraging Queenslanders from making claims, a public meeting organised by the Insurance Council of Australia (ICA) heard last week.

Some property owners in Karalee, a suburb of Ipswich, have not yet made a claim because they are worried about using the wrong description of flooding and being rejected, having heard reports about flood definitions in policies.

“Some people who had put in claims said they were worried they had stuffed up their chances because of the wording they used,” according to an insuranceNEWS.com.au observer who attended.

Representatives of ICA, the Financial Ombudsman Service and Queensland Legal Aid encouraged residents to make claims for water damage and outlined dispute procedures if a claim was rejected. People were urged to make a claim even if they were unsure, or believed they were not covered.

Some properties in Karalee were completely inundated and owners who had rung their insurers and been told they were not covered were urged to still make a claim.

There was anger and frustration as residents complained of claims being rejected when they thought they were covered and views expressed that insurance companies were “ripping people off”.

Some had been told they were covered for 30% of their claim or a much smaller amount than anticipated, and there were complaints of poor communication, with assessors failing to get back to people.

The meeting is one of six community information meetings that ICA, the Financial Ombudsman and Queensland Legal Aid are hosting this month.