Toongabbie Wild Weather Warning: CHECK YOUR INSURANCE POLICY NOW!
As the damages bill from recent extreme weather continues around NSW and Toongabbie are you wondering just what their property insurance will cover. Was damage caused by a flood, or storm water run-off?
The Insurance Council of Australia (ICA) warned that not all property insurance policies will cover policy holders for this type of flood event and that policy holders should contact their insurer for clarification.
“All claims received by the general insurance industry will be assessed on a case-by-case basis taking into account the nature of the damage sustained and the terms and conditions of each insurance policy”, ICA Chief Executive Rob Whelan said. “Flood insurance products are widely available in QLD and have been for a number of years,” he added.
A report by consumer advocacy group Choice into home and contents insurance found that while rainwater runoff is covered by almost all policies, cover for flash flooding is only offered by around two thirds of policies.
Flooding that occurs when it hasn’t rained in your area such as when a river overflows due to heavy rain upstream — is only covered by about 50 per cent of insurers, the report showed.
Flooding now makes up almost one-third of all property insurance pay-outs related to natural disasters, according to the ICA.
Choice found that if you are living in one of 170,000 homes in Australia considered to be in a high flood-risk area you may experience some difficulty getting flood cover and may be charged a surcharge which can range from 30 per cent up to 1000 per cent of your premium. While many policies do include coverage for rainwater runoff, this may not include flash flooding.
It was also found that insurers also use different definitions and exclusions for floods. Some cover you against flash flooding after heavy rain if it was caused by a man-made waterway but not if it was caused by a water catchment system, such as a creek flowing behind your house.
Generally speaking, if your property is located within an area that has been classed as “flood prone”, your insurance policy will not cover you for flooding. If your property is not in a flood prone area, you may or may not be covered for ‘flash’ flooding, depending on the insurance policy you hold.
If you’re not sure if your property is in a flood prone area, contact your local council. As always, the golden rule is if you don’t know, ask! Phone your insurance company and ask them exactly what you’re covered for and under what circumstances.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.