Nationals Member for Rodney, Paul Weller this week encouraged members of his electorate to “shop around” for flood insurance and wanted to make clear that “there are options available for competitive flood insurance”.
“Some companies offer you to opt in or out when it comes to flood insurance for your home or property and there are competitive options available – you just need to shop around,” Mr Weller said.
Mr Weller’s comments come on the back of recent meetings at Parliament House with insurance companies and National Party members.
Following last year’s Natural Disaster Insurance Review, the Federal Government proposed mandatory flood insurance with every home insurance policy, but with home owners given the choice to opt out if they do not wish to be covered for floods.
“This review also recommended a standard definition of a flood, something that caused much confusion for many people in my electorate, both during and following last year’s floods,” Mr Weller said.
The definition states a 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 water course, whether or not it has been altered or modified, or from any reservoir, canal or dam.
“It is hoped that this standard definition will remove the confusing debate about riverine flooding versus flash flooding, which has caused grief and confusion for many people, often with neighbours being treated differently by their individual insurance companies,” he said.
Following discussions with insurance companies it appears some still use the one in 100 year flood event rule-of-thumb or have premiums based on post codes or individual risk assessments.
Furthermore, some companies have an ‘opt out’ clause for flood coverage while for others it is a compulsory component of their insurance coverage.
“In terms of opting out, some companies will require the ticking of box to opt out, so it is clear that you have made that choice.”
“It is important to read all the fine print of your insurance policy and I suggest a number of quotes, in writing, so that you can compare and can see the difference,” Mr Weller said.
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