Confusion Still Reigns On Insurance Coverage
Newcastle Herald
Thursday April 12, 2001
THE flash flooding experienced across the region this week has again raised questions about what insurance policies actually cover.
The Insurance Council of Australia (ICA) warns that the cause of the flooding could mean the difference between being insured and having to pay costs yourself.
Many areas hit by Tuesday's floods should fall into the `urban drainage overflow' category, which normally occurs when gutters and storm water drains in urban areas become blocked or overflow after heavy rain.
The ICA states urban drainage overflow and flash flooding is included in some home building and contents policy.
But, it warns, there may be limits to the cover.
So those who suffered during Tuesday night's flooding across the New Lambton and Waratah areas should be covered.
But the people of Gateshead may not be.
Because the floodwater came from a storage dam they will need to speak to their insurance companies to discover whether they are covered or whether they need to seek compensation from other areas.
The ICA can provide detailed advice concerning flood insurance and what residents should look for in a policy.
www.ica.com.au
© 2001 Newcastle Herald