Sandra Van Dijk is from the Insurance Council of Australia and answers questions on the insurance problems surrounding flood victims and tells consumers how to ensure they are fully protected from future flood events.
Q. Should people clean their homes after the flood, or wait for assessors to arrive?
A. People should clean their homes after the flood. As part of the clean-up process remove water and mud damaged possessions. Carpets and soft furnishings can be removed from the building and disposed of but if possible take photos or make an inventory of the possessions that have been damaged. However, contact your insurer before authorising repairs.
Q. Should residents take photos of the damage before they begin cleaning?
A. It would be of assistance if they are able to take photographs as they clean, however, it is not mandatory.
Q. One resident has said their insurance was for $380,000 on their home and $80,000 on their contents, but have been offered by their insurer $20,000 for their home and $20,000 for their contents. Should this be happening?
A. No, the affected resident should try to clarify the situation with their insurer. If they are unhappy with a decision they can appeal it or contact the Financial Ombudsman Service for assistance.
Q. What should consumers look for to ensure they are insured against floods?
A. Consumers with property and contents insurance, who may be at risk of flood damage, should review the terms and conditions of their cover by reading their Policy Disclosure Statement. Restrictions on policy cover are listed as exclusions which detail the circumstances under which cover is not applicable. The cost of cover is typically proportional to the risk of flooding in your location and the value of the assets you seek to protect. If in doubt make contact with your insurer to clarify the extent of cover currently held and your insurance needs.
Q. What should consumers do if they feel they are being treated unfairly by their insurer?
A. The insurance industry is regulated by the Australian Prudential Regulatory Authority and there is also an industry Code of Practice. There are both internal dispute resolution processes where policy-holders can appeal a decision by their insurer or they can contact the Financial Ombudsman Service.
Survey: Is flood cover included with standard household insurance?
| Suncorp | Yes, included in every policy |
| RACQ | No, it’s an optional extra |
| Allianz | No and not offered as an optional extra |
| QBE | No comment |
| AAMI | No and not offered as an optional extra |
| NRMA | No and not offered as an optional extra |
| APIA | Yes, included in every policy |
| GIO | Yes, included in every policy |
Source : Goldcoast.com.au
