We all know some words have two meanings. For example ‘fine’ doesn’t always mean ‘fine’ and ‘thanks a lot’ doesn’t always mean she is really grateful!

In light of recent severe weather catastrophes we will take a look at what sits behind an insurance policy. Definitions, wordings and limits are very important. Please don’t buy insurance solely on price. When it comes to insurance, cheaper is not always best, it might be close to its use by date and a bit on the nose.

As they say ‘you get what you pay for…’

The question of the today; is my house covered for flood?

One definition of flood “is the covering of normally dry land by water escaping or released from the normal confines of a watercourse or lake, whether or not it is altered or modified. Flood also includes water escaping from the confines of any reservoir, channel, canal or dam.”

The term “flood” is used to describe all kinds of happenings and events and this leads to confusion. “I flooded my laundry when the sink overflowed” “Honey I’ve flooded the car” “My street got flooded last week” I also heard a media report stating “A man fell from his roof while fixing flood damage”

If you think you fit into the small percentage of homes that might be flood affected, make sure you ask about flood cover. Again ask questions, “how much cover do I get?’ I have heard in one instance a company saying they have flood cover, only for people to find they are limited to $15,000.

Flood is not normally your washing machine overflowing [that’s water damage].

Flood is not rain running down your walls because of the wind blowing your roof off in a storm [that’s usually storm cover].

Flood in general is not having so much surplus rain water in the street that it runs into your home [you guessed it, storm damage].

What does your policy actually cover? Unfortunately over the past few months many policy holders are finding out what they ARE NOT covered for.

Your agent or broker is all too happy to help you with any questions you may have. You can ask for Product Disclosure Statements [PDS] to read at your leisure, it clearly defines all that is covered or not covered. You may even find that you are already covered for flood!