A new report shows that Australians are under insured for their home and contents in the event of floods.
The annual CHOICE home and contents insurance report showed that some Australians are not fully covered for wilder floods. Whilst localized rainwater run off is covered by almost all policies, instances of flash flooding are only covered in two thirds of policies studied. Furthermore floods that originate upstream are only covered in half of the insurer policies assessed by CHOICE.
Due to such inconsistencies CHOICE has urged Australians to double check their policies as we approach flood season – typically April to October. Businesses should also ensure that their premises are fully insured against all forms of flooding.
“In light of the severe flooding experienced by many Queenslanders earlier this year, CHOICE is urging consumers to check their policy to see exactly what type of flooding their insurance covers them against,” urged CHOICE spokeswoman Elise Davidson.
The Insurance Council of Australia estimates that floods account for a third of all home and contents claims relating to natural disasters. The damage from floods in the Hunter region of NSW last year totaled $1.4 billion.
The CHOICE report assessed policies from 21 leading insurers.