Suncorp and QBE have determined that shops damaged by floods in the NSW town of Picton will be fully covered under the storm section of policies.

In contrast, IAG says it will fully pay only 80% of claims.

Shop owners in the town’s Argyle Street panicked when insurers brought in hydrologists to determine whether damage was caused by stormwater or flooding from Stonequarry Creek – for which many would not be covered.

Suncorp, whose brands include AAMI, Vero, Resilium and GIO, has released a statement saying customers will be covered under the storm section. QBE has made the same determination.

But a spokesman for IAG told insuranceNEWS.com.au that not all customers will be fully compensated.

“We have been in touch with all our customers in Picton and can confirm 80% of our customers are fully covered, 2% of claims will not be covered because the damage has been caused by floodwater for which they are not covered, and 18% of customers will be covered for about 80% of their claim due to the mixture of storm and floodwater,” he said.

“We take a great care, along with our independent water experts, to ensure we understand the details of the impact on each property within the community and how policy wording applies, so we can settle claims as quickly as possible.”

IAG says it is working closely with Picton residents to help them recover after the storms earlier this month, and has paid out $1 million over the past few days.