Flood cover - not as simple as it seems

world news image: sbs.com.au, Queenland flood waters 

In the aftermath of the Queensland floods and with over 2000 homes already affected by flooding in Victoria, and further flooding predicted to continue across Victoria for at least another seven to ten days, many people are now looking into the fine print on their insurance contracts and are becoming concerned that their policies may not actually provide the cover they assumed they had bought.

Many policies exclude cover for certain types of flooding, for example; A typical policy may provide cover for flash flooding but not for flooding on normally dry ground due to the gradual rise in natural river levels. Exclusions such as the one just mentioned can be quite difficult for property owners to interpret and can lead to disappointment when a claim is rejected on this basis.

Property owners cannot hope to overturn a rejected claim by complaining that their policy is difficult to understand or that the exclusions were not explained to them in detail. The ABC’s Annie Guest has reported “The Insurance Council of Australia has rejected complaints that flood policies are too complicated and is instead blaming customers for not reading their contracts”. Read full story here: http://www.abc.net.au/news/stories/2011/01/19/3115972.htm

With above average rainfall predicted to continue particularly across Queensland and Western Australia until Autumn 2011, our insurance brokers urge that all property owners ensure that they avoid unpleasant surprises and find out exactly what they are and are not covered for in the event of a flood.

The easiest way to find out what your policy covers you for is to talk to a qualified insurance broker, insurance brokers are different from insurance companies, they do not simply sell you their insurance policy and send you out an invoice. A good broker will be able to listen to your situation and recommend the best policy for your needs, they can shop around and provide quotes from more than one insurer for you, and they can help explain in plain English exactly what you are covered for. You can also call your broker throughout your policy period with questions and in the event of a claim, a reputable broker will assist you to complete all necessary paperwork and deal with the insurer on your behalf to get your claim dealt with fairly, and in a timely manner.

Don’t leave it till it’s too late to find out you aren’t protected and if you or your business don’t have a great broker – contact Coverforce Insurance Brokers for sound advice, quality cover and superior service.

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