Flood insurance !

In light of the flood disaster in Queensland and on the New South Wales north coast, a lot of people will be asking a very important question. Is flood damage covered in their home insurance policies ?

In 1998 we had a massive rain storm hit Wollongong and in the days that followed that same question got conflicting answers. Initially most insurance companies refused claims - but that changed under public pressure and in the end most policies were honoured.

Three insurance companies dug their toes in and their policy holders have never had claims accepted. There were farcial situations where different people occupying the same building but with different insurers received totally opposing outcomes.

At present a major insurance company running television advertisements specifically claims that flood damage is covered in their policies - and goes on to list other water hazards ranging from burst pipes to tsunamis.

The problem is there seems no clear definition of what is and what is not covered where water damage is concerned as far as the legal situation is concerned. Following that massive Wollongong rain storm back in 1989 it seems that acceptance or rejection is still at the discretion of each individual insurance company.

That is an intolerable situation - and a disgrace that the Insurance Council should immediately remedy.

The state government should insist that the Insurance Council require it's member companies to state their policy on water damage - and publish the names of those companies who do offer automatic cover - and those who do not !

The insurance industry has long had a shonky reputation when it comes to honouring claims. It is time it was dragged kicking and screaming into the open and prospective insurers were able to know what they are buying without the gobbldygook of small print " if's, but's and maybe's " in most policies.

A home is the greatest asset most people own in a lifetime. There should be no question of what cover is provided !