QUEENSLAND flood victims should not expect any special favours from insurance companies if their homes are not insured against floods.

The Insurance Council of Australia has warned that insurance companies would pay out on claims according to the terms and conditions of policies.

"If people do not purchase flood cover insurance, they will not be covered," an ICA spokesman said yesterday.

It is estimated more than half of all insured homes in Queensland are not covered for flood damage.  

The Australian Securities and Investments Commission estimated that 70 per cent of all Australian homes were under-insured in 2005.  

"More than 50 per cent of all available insurance policies in Queensland provide flood cover," the ICA spokesman said.

"People should assess their needs and get the proper insurance coverage for their homes and not be guided by price only."



Suncorp, the biggest insurer in Queensland, is the only company to automatically protect against flooding for home and contents insurance policyholders.

There are three types of flood insurance coverage: flash flooding, storm damage and riverine flooding.  

IAG, Allianz and QBE do not offer flood protection. RACQ provides flood and riverine cover as an optional extra.

An industry source said some companies were not prepared to offer flood protection in areas that had been subject to floods in the past.

"I would be surprised if insurance companies would make ex-gratia payments to customers who do not have flood insurance," a spokesman for Allianz said.

"The scale of the Queensland disaster is so large that it would be financially prohibitive."

However, flood victims whose homes have been wrecked by the floods and who have no insurance can turn to the state government for assistance.

"We will be helping people without flood or home insurance, but it is far too early to know the details, and the priority right now is dealing with the ongoing emergency situation," a government spokesman from the Queensland Premier's office said.

Premier Anna Bligh has set up a flood assistance program, and announced concessional loans for primary producers and small businesses to help in the flood recovery and clean-up.

In addition, the Premier's Flood Relief has raised $35.8m to help families in need.

Suncorp received an additional 1000 claims from flood victims in Toowoomba, Ipswich and Brisbane yesterday, taking the total claims lodged so far to 5000.

IAG has received 2400 claims from the same area but said it was too early to calculate the total claim cost to the insurer. This is in addition to the 1200 claims it received from earlier floods caused by Cyclone Tasha, which is expected to cost IAG between $10m and $30m. IAG operates under the NRMA and CGU insurance brands in Queensland.

RACQ received 400 fresh claims yesterday, taking its total to 2000. QBE declined to comment.


Comments on this story

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     LaurieOfCoburg Posted at 2:06 AM Today

         Why would you expect insurance companies to bend the rules or have a heart. How are you supposed to get cover for flood when most of the companies won't offer it unless you live on top of Mount Everest. One of the main reasons l left the insurance industry, they are quick to take your money but will always find an excuse not to pay out.  

   *
     michelle of melb Posted at 1:54 AM Today

         If you're stupid enough not to have your house insured, why should you expect to be compensated. Those who do the responsible thing and do insure themselves should be taken care of first, not the freeloaders who sit back and expect someone else to bail them out all the time. Sorry - NO SYMPATHY.

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     Wendy of Rural Victoria Posted at 1:34 AM Today

         It's a bit rich when insurance companies refuse to cover you for flood.

As per usual sook, you are barking up the wrong knee. The issue isn`t 'flood insurance", the issue is the fact that even with "flood insurance", in the event of a large scale flood, insurance companies simply aren`t big enough to pay out, hence the "act of god" clause.

Thanks crook.

Please include a link to the source when you post articles.

http://www.heraldsun.com.au/news/special-reports/no-insurance-no-payout/story-fn...

"Boswell is suggesting that the flood component of all insurance premiums be directed to central fund, in an attempt to eliminate this fault in the system"

Is this a new thing? That wasn't what he was suggesting the other day - he was proposing to add a levy to ALL insurance policies, to build a fund for natural disasters.

Do you even understand your hero's proposal?

Quote:


That bit surprises me.

aussiefree2ride wrote on Jan 14^th, 2011 at 6:29am:


Insurance policies (in Australia) list things that are covered and things that are NOT covered.

I don't recall seeing under the NOT covered list, an exclusion saying Act of God!

For want of a better term, there are "Acts of God" that are covered and there are "Acts of God" that are Not covered.

There are also "Non-Acts of God" things that are covered and "Non-Acts of God" things, which are Not covered.

To all, I strongly suggest, you read the policy, before you buy it and you ensure that the major covers you are likely to need, are covered.

If not, then look around!

That said, it may be likely that some covers, will start to become difficult get, at any price!

Please delete wrote on Jan 14^th, 2011 at 8:31am:



Keep working on it, you might get there one day, sorry, can`t wait for you.