According to a Sydney Morning Herald (15 July, BusinessDay) report, two of the country’s largest insurers are expected to introduce full flood cover by early 2012. ‘The move is partially aimed at heading off the prospect of the government stepping in and forcing insurers to offer flood cover to all customers living in high-risk zones,’ stated the report, written by Eric Johnston.
Apparently little more than half of the insurance policies now bought in Australia provide automatic cover for floods.
‘The insurance industry presented a united front as a raft of submissions were handed over (on 14 July) to the Natural Disaster Insurance Review,’ stated BusinessDay
Flooding regularly hits 7% of residential addresses in Australia causing some $450 million in annual damages, according to Insurance Council of Australia figures.