Of the many covers available in the strata insurance marketplace, flood insurance is one I find myself answering queries about almost every day, particularly after a day of heavy rain. With wild weather sweeping across the country in recent times (and the likelihood of future weather events occurring}, it's vitally important that strata managers and Owners' Corporations understand their risk exposure to flood events, what flood cover involves, and ensuring the appropriate cover is in place.
HOW IS A 'FLOOD' DEFINED?
Before 2012, each insurer in the market had its own definition of flood cover, which made it difficult for consumers to accurately compare and understand the different options available to them. In 2012, the Insurance Council of Australia introduced a statutory flood definition applicable to all domestic property insurance contracts [including Residential & Commercial Strata] to reduce consumer confusion about what constitutes a flood event.
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