GIO has moved to clear up confusion over its new automatic flood cover policy.

The Suncorp subsidiary was criticised last week by Melbourne newspaper The Age after a television advertising campaign began screening which clearly outlines the sort of flood events it covers under its home and contents policy.

The list of defined events includes tsunami. News reports said the GIO product disclosure statement reveals the policy does not cover “actions of the sea”.

But GIO Executive Manager for Motor and Home Underwriting Dennis O’Brien told insuranceNEWS.com.au the advertisement is accurate.

“Tsunami is caused by an underlying earthquake,” he said. “When we talk about actions of the sea we don’t mean tsunami. We do cover tsunami.”

Mr O’Brien says Suncorp and GIO policies cover both tsunami and storm surge claims.

Flooding from the sea is also covered if it is accompanied by household damage associated with cyclone activity. But flooding from naturally occurring high tides is not covered.

GIO’s combined flood and storm package also covers flood from heavy rain causing rivers, creeks, canals or lakes to break their banks and overflow.

It also extends wind, storm, hail, rainwater run-off and flash flooding.