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Extreme Weather Policy Definitions
Storm? Or Flood? – Understanding Extreme Weather Policy Definitions
Words have always mattered when it comes to insurance. One of the more commonly-misunderstood areas is the difference between ‘flood’ and ‘rainwater runoff’ – something firmly in the spotlight at the start of 2022 given the havoc caused by La Nina. Flood, storm and rainwater policy wordings definitions can vary widely across providers. In assessing a water damage claim, the critical question your insurer will want to determine is how your property was inundated. If it was all storm or rainwater or was it a mix of stormwater and flooding. In fact, a report released by the Financial Rights Legal Centre (FRLC) in March 2022 found 65% of insurers consider floods and storms to be separate events.
Given policy wordings and exclusions are not always standard, it’s essential to understand yours to ensure you’re not unnecessarily exposed.
What is the standard definition of flooding?
“The covering of normally dry land by water that has escaped or been released from the normal confines of any lake, river, creek or other natural watercourse, whether or not altered or modified, OR any reservoir, canal or dam.”
Source: Insurance Council of Australia
Are you fully covered for flood damage?
Contact us today to find out.