‘Stormwater’ versus ‘floodwater’ – It is important to know the difference when it comes to insurance policies.
With many Australians experiencing the devastation that comes from storms and flash floods, it’s important before summer arrives to review your insurance policy and work out exactly what you are covered for.
It still may be unclear in your insurance policy just exactly what you are and aren’t covered for, but most insurance policies cover damage from stormwater (to different degrees) but do not cover damage from floodwater.
This distinction between ‘stormwater’ and ‘floodwater’ can be confusing for many homeowners.
According to FIDO, the consumer website of the Australian Securities and Investments Commission, a general guide is:
1. ‘Stormwater’ is defined as water running over the surface of the land while ‘floodwater’ is defined as water escaping a water course.
2. In practice, it usually requires expert evidence from hydrologists to help determine whether the damage was caused by ‘stormwater’ or ‘floodwater’.
3. If the damage was caused by a combination of ‘stormwater’ and ‘floodwater’, this damage will not be covered.
These are just a few factors that you need to consider but you should be aiming to review your policy every couple of years. As mentioned, with summer approaching, it’s important to know where you stand.
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