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?

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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.

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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.


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, 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.

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