ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Floods and Flood Insurance in Australia

Updated on June 7, 2012
Australian Road Sign Queensland
Australian Road Sign Queensland | Source

Floods and Flood Insurance-In the wake of the recent devastating Floods in Queensland Australia it is timely to consider flood & property insurance. Some people were uninsured because the cost of Flood Insurance were so high. premiums. Some were covered but not technically according to their policy. Many thousands of Queenslander's have been caught short with their insurance policies. Many have houses that are not condemned as inhabitable. Many have lost all their possessions; Or have been so damaged by water and mud that they are now useless. If you are going to get house insurance firstly check your house on home & see if it is in a flood prone area. Secondly check with each Insurance company what their definitions of floods are including flash floods. Some Insurance companies such as Suncorp here in Queensland make a point of advertising the fact that they cover for flood insurance. So everyone knows in clear and simple terms that they are covered for flood insurance. The government is considering regulating insurance companies to adopt clearly defined definition so that people can in clear English understand when and when they are not covered fro flood insurance. The Term 'rising river' has become a term of contempt here in Queensland as some insurance companies attempt to define the 2011 Floods under this definition which would exclude many policy holders.

Across America it has been calculated that only 20% of homes at risk for floods are covered by flood insurance. Private insurers are unable to insure against the peril of flood due to the prevalence of adverse selection, which is the purchase of insurance by persons most affected by the specific peril of flood. In traditional insurance, insurers use the economic law of large numbers to charge a relatively small fee to large numbers of people in order to pay the claims of the small numbers of claimants who have suffered a loss. Unfortunately, in flood insurance, the numbers of claimants is larger than the available number of persons interested in protecting their property from the peril, which means that insurers are unable to cover their costs in flood insurance.

The lack of flood insurance can be detrimental to homeowners who may discover only after the damage has been done that their standard insurance policies do not cover flooding.

Flooding is defined by the National Flood Insurance Program as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from: Overflow of inland waters, unusual and rapid accumulation or runoff of surface waters from any source, and mudflows.

Here in Australia after the recent floods debate has mounted over the definitions that some insurers are using to absolve themselves from liability from flood claims.  The term 'river rising' for instance has been used to absolve responsibility &payment by some insurers

Before spending your hard earned dollars on any insurance policy whether it be health, flood insurance, home and content insurance it pays to know in complete detail what you are and are not covered for in the event of a claim.

Comments

    0 of 8192 characters used
    Post Comment

    • Tinsky profile image

      Tina Dubinsky 

      7 years ago from Brisbane, Australia

      Hi Barry, Thanks for the article. We are also lucky Brisbane-ites to not have been effected, but its made us think about checking out our policy to find out what our house insurance actually covers. Glad you weren't effected and thanks for all the Twitter updates early last week, they were very helpful.

    • BJBenson profile image

      BJBenson 

      7 years ago from USA

      Wonderful how you say, partially flooded. I would of been scared! Stay safe!

    • barryrutherford profile imageAUTHOR

      Barry Rutherford 

      7 years ago from Queensland Australia

      Yes I am quite safe. The street I live in was partially flooded & I was without power for a week but other than that just worried for everyone else !

    • BJBenson profile image

      BJBenson 

      7 years ago from USA

      You have really been in my thoughts. I hope you and your love ones are safe. Praying for you in the US.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)