What’s the deal with flood cover?

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Do you have flood insurance? After the floods and storms that ravaged NSW earlier this year, and the more recent disaster threatening to cover the entire state of Texas, USA, you need to know you’re protected. Just a few centimetres of water can ruin carpets and furniture, damage your kitchen and electrical wiring, and cause structural damage to the building. And the cost of repairs is steep, with floods costing Australians about $550 million each year.

Before the 2011 Queensland floods many home and contents insurance policies did not include flood damage and only this large-scale disaster forced a change in the industry. So while flood cover might now be standard it’s still not a legal requirement.

If you’re living in a flood-prone area check your home and contents policy wording carefully to see if you are already covered. If you’re not sure, check with your local council or SES to see if your property might be at risk. And if you don’t need flood cover then you shouldn’t be paying for it, so consider switching policies.

Your flood risk category depends on your property, not postcode, and will determine the premium you pay. If you notice your premium price jumping suddenly, it might mean they have new information telling them your property is at a higher risk than they previously thought.

So if you’re worried about the threat of rising water, call your insurer. And if you’re not happy, take your business elsewhere – it’s not worth the risk with such unpredictable weather patterns.

Need some help with insurance? Trial Map My Plan today, and read more tips on how to make it work for you.

Create a free account on Map My Plan  and get your finances back on track today.


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