Is your Property Well-Insured this Wet Season?
The wet season in North Queensland is famous for its heavy rainfall, storms, and flooding. For property owners, this time of year can feel like living inside a washing machine set to “spin.” This article explores why holding property insurance during this wet season isn’t just a good idea - it’s as essential as an umbrella in a rainstorm.
BEWARE; not all policies are created equal, and some have more holes than a leaky roof. There is no substitute for understanding your coverage - especially when it comes to flood damage - and following your legal obligations under your insurance policies.
When was the last time you reviewed your property insurance?
Flooding and Property Insurance
Property insurance covers damage and loss to buildings, contents, and stock caused by insured events like fires, floods, and storms.
Floods are defined as water covering normally dry land after escaping from natural or artificial sources. In other words, if your living room starts to resemble a swimming pool, you’ll want to check your policy…
Flood damage is often excluded from standard policies unless you specifically ask for it. Don’t assume you’re covered—read the fine print, or you might end up with a very expensive indoor water feature.
Duty of Disclosure
Before you sign up for insurance, you must tell your insurer everything relevant about your property. If you “forget” to mention that your house is built on a floodplain, your insurer might “forget” to pay your claim.
If you leave out important details or stretch the truth, your insurer can either void your policy or pay you less.
Bank Requirements
Insurance isn’t just about peace of mind - it’s about keeping your bank account afloat. Lenders often require insurance to protect their investment, so unless you want to explain to your bank why your house is now a houseboat, keep your policy up to date.
Property insurance is your best friend during the wet season - reliable, protective, and there to bail you out (sometimes literally).
Property owners should:
- Review their insurance policies to make sure they cover flood and storm damage.
- Fulfil their duty of disclosure.
- Notify insurers of any changes in property use.
- Consider extra coverage, like business interruption insurance, to protect against the unexpected.
By following these steps, you can keep your property intact, no matter what the wet season throws your way.