You may remember that after the floods in Brisbane and the surrounding area in 2011, many homeowners were shocked to discover that their insurance didn’t cover the damage left by the floods. Could your insurance company cover your Sydney home if it was damaged in a natural disaster or do you need to start looking for a good “No Win, No Pay” insurance lawyer?
A lot has changed in the few years since the 2011 floods. Many insurance companies now offer cover for floods, though you do need to be wary of their definition of flooding and what they will cover. However, though insurance companies may now be providing flood cover it certainly isn’t cheap in areas that are prone to flooding, which often means many people can’t afford to be insured at all against floods. So are the most likely to be affected by natural disaster doomed to forever have it affecting their wallets?
Hopefully not. Local governments and state governments have begun to put measures in place to reduce the amount of people affected by floods, or at least give them a hand in getting the right insurance. Brisbane has a history of flooding, yet people were still allowed to buy and build on land that was known to be a floodplain. Local councils have offered to buy back this land, but many people choose not to go with this for a number of reasons. The alternative is a proposal for people in areas that often flood to have discounts on their insurance premiums. But are insurance companies on board with this idea?
At least one insurance company is, but it makes sense for the rest of the industry to join behind this proposal as well. Though insurance companies are about making money, they make this money through the community. If the community and society see no reason to support them, then the money dries up. Insurance companies will need to learn how to balance creating a profit with helping members of the community.
So what can you do to protect your home against natural disasters? Go over your insurance company’s policies, and if you’re concerned about anything then speak to an insurance lawyer who can help you pull apart all the technical terms and get to the information you want.