Are you covered for flood? 

It is a sad fact that we usually don’t really know what our insurance policy covers until something happens. By then of course, it’s too late. 

When you are arranging your insurance, unless you ask the question, you may not know whether you are covered for flood or not. And if you simply ask,  “Am I covered for flood?”  You could  receive a simple, “Yes,”  but not really know the applicable terms and conditions.

Some companies provide flood cover but only if a floating object knocks a hole in the wall of your house. Other companies provide flash flood and rainwater run-off, but will not pay a claim if you are  flooded by water rising from a creek or river bed.  No policies I know of will cover erosion or water percolating from an underground source of any nature.

All insurance companies are required to provide you with a product disclosure statement (PDS) but very few people take the trouble to read them.

Most PDS’s spell out in clear, plain English terms, what your policy covers and what it does not cover. Always take the time and trouble to read your PDS so there are no surprises should you have  a loss you wish to claim for.

Another trap to be aware of is, most companies have different terms and conditions for commercial policies and domestic policies. Just because you took the trouble to check your home was covered for flood, if you take out a commercial or farm policy with the same company, it is highly likely the events you are protected for are quite different to those defined in your domestic policy.