The Federal Government has dropped the requirement for insurers to send clients details of flood cover on renewals.

It had proposed the information should be sent with every renewal, extension, variation or reinstatement of a contract.

Financial Services Minister Bill Shorten told the House of Representatives last week the change of heart was due to industry lobbying.

“These amendments will ensure insurers will only provide information to the insured on their flood cover initially or before entering into an insurance policy, or at the first renewal after the amending legislation commences or any variation that changes the extent of flood cover,” he said.

The change came during the second reading of the Insurance Contracts Amendment Bill.

Mr Shorten also announced further amendments to the bill clarifying aspects of a contract providing flood cover, which have been changed to meet insurers’ concerns that they would have been restricted from using common limitations for this type of policy.

“These amendments include exclusions for specific items or high-risk properties such as seawalls, jetties and pontoons or exclusions for flood damage within the first 72 hours of a policy being issued,” Mr Shorten said.

“The amendments will ensure that insurance policies [which] provide flood cover do not affect the terms and conditions that would otherwise be applicable.”