People whose insurance companies knock back their claims for flood damage are being advised to challenge the ‘‘unfair’’ fine print in their contracts.
A lawyer in the flooded city of Rockhampton says the artificial distinction used by insurance companies to separate flood and storm damage to refuse claims is a clear example of why an overhaul of insurance protection is overdue.
Manager of Maurice Blackburn lawyers Gino Andrieri is urging flood victims to lodge claims even if their insurer tells them they’re not covered for flood damage.
‘‘These horrendous, widespread floods are having a devastating impact on many Queenslanders, and unfortunately, many may be hit again by insurance companies relying on fine print to reject claims,’’ he said in a statement. ‘‘Policy holders should consider challenging their insurance company’s fine print if their claim is not accepted.
‘‘Many people do not realise there is an important, but artificial distinction between flood and storm damage.
‘‘Storm or rain damage is covered in almost all home and contents insurance policies, but water flowing from rivers, creeks, dams, lakes or reservoirs causing flood damage may not be covered.
‘‘It is more complicated if you happen to suffer both storm and flood damage.’’
Mr Andrieri said the artificial distinction is unfair and there should be an overhaul of the insurance industry’s protection for consumers affected by storm and flood damage.
‘‘Unfortunately, some Queensland residents are likely to suffer, so it’s really important you seek legal advice if you are being mucked around by your insurer,’’ he said. ‘‘Policy holders have rights as consumers, but they may not be aware of what can be done or who they can talk to if their claim isn’t paid.
‘‘Don’t assume you’re covered for flood damage, if impacted by the floods lodge a claim with your insurer and if your claim is rejected, you can appeal – get legal advice.’’
The Insurance Council of Australia (ICA) said some insurers do specifically cover flood damage and the market is very competitive.
Suncorp said its personal home and contents policy includes automatic flood cover as standard and does not exclude people in high flood risk areas taking out insurance.
An ICA spokesperson said people should shop around for policies that suit them, and make sure they read the conditions.
The ICA has declared the floods a catastrophe and set up a 24-hour emergency hotline (1300 728 228 1300 728 228) for people who have a question about their policy or need help identifying their insurer.
Source : The Sydney Morning Herald
