The sight this week of five hundred people in a village encircled by rising flood waters in the Hunter Valley has turned the thoughts of many to the problems of adequate home insurance.
The damages bill from the recent extreme weather was estimated at one stage to be above $100 million and increasing rapidly. The Insurance Council of Australia said about 20,000 separate claims had already been filed by Tuesday night, but that number was expected to rise.
Unfortunately, there have also been cases reported already of claims not being met by insurance companies. One Maitland resident told the Sydney Morning Herald that his backyard had been demolished by a landslide apparently caused by the flood, but he had been told by an assessor from NRMA Insurance that his policy only covered storm damage, not landslides.
It may seem like a fine line, but reinforces the issue of being very clear exactly what your home insurance policy does cover, and changing it where necessary to ensure that you are not "caught short" in an emergency.
Most standard home insurance policies protect against building damage caused by storm, burglary, theft, fire, explosion, riot, malicious damage, earthquake and lightning, and some can be expanded for additional coverage, such as flood or snow damage.
Generally speaking, if your property is located within an area which 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.
