We ask Scott Norton from Norton & Co. about insurance of flood affected properties as the products have come a long way since 2011.
Nearly everything you must know about insurance to make an informed decision is here.
Feel free to contact Scott for an obligation free comparison quote – scott@nortonandco.com.au or 0499 907 623
If you are familiar with the 4171 postcode you’ll know that there’s some parts that can flood, and there’s much of the postcode that doesn’t flood. But, what you may not realise is the discrepancy in opinion that exists relating to this specific peril.
Traditional buyers in the area are usually quick to view the Brisbane City Council flood mapping tool online. This is a great free tool and shows various flood overlays. However, this tool is not necessarily to be taken as gospel. Over my time in insurance I’ve seen properties listed on that map as being in the flood zone fail to flood during unprecedented rain events. And I’ve also seen the opposite with properties not listed on the map as in a flood zone get flooded during heavy rain. To that extent all prudent buyers should consider making sure they have an adequate insurance policy that covers flood.
Whilst I believe the flood mapping tools commissioned by Council and State Government are great. It’s my humble opinion that they make some very generous allowances and take a very conservative approach to advice. This could be done for various reasons, most notably the professional exposure of getting the information wrong. I realise this is a bias opinion, but don’t you think insurance companies having vast amounts of actual prior claim data right down to specific address location would be in a better position to provide information relating to flood exposure? Just a thought.
Those old enough to remember might recall the 2011 Brisbane Floods. Back then flood insurance wasn’t as common as it is today. In fact, many homeowners affected by the floods didn’t have the right cover and invariably were knocked back on their insurance claims. For some people this meant hundreds of thousands of dollars they had to come up with themselves.
Going back nearly 8 years now the insurance industry in Australia adopted a standard definition for “Flood” The definition of flood is:
• the covering of normally dry land by water that has escaped or been released from the normal confines of:
• any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or
• any reservoir, canal, or dam.
Further to this it’s now extremely common for most Home and Contents insurers to provide flood cover as standard in their policy. However, the insurers will usually charge a loading built into their pricing for this specific peril based on their perceived risk of a flood event occurring at that location.
This is where I come in. My Insurance Brokerage assists clients by sourcing 9 quotes from various providers in the market who we know pay claims well and include flood. Those 9 insurers include Allianz, Chubb, Custom Home, CGU, Hollard, QBE, Vero, Blue Zebra and IAL. Some of these insurers only sell their product through brokers. Just because 1 insurer believes an address is a high flood risk, doesn’t mean the other 8 share their view. Particularly in the 4171 we see dramatic differences in pricing between the insurers and if you’ve only received one quote from your usual provider how are you to know where their perspective sits on the spectrum?
It costs you nothing for our team to run up a quote for you. So feel free to get in touch with us today.