Every Australian seeking to purchase or renew home and contents insurance will be offered flood cover using a common sense definition of 'flood' under proposals announced today by Assistant Treasurer Bill Shorten and Attorney General Robert McClelland.
The announcements are part of the Gillard Government's response to the 47 recommendations in the final Natural Disaster Insurance Review (the Review) report. The Review was commissioned to examine insurance for flood and other natural disasters following the 2010 and 2011 summer floods.
The Review made a range of recommendations encompassing flood risk management, insurers' claims handling and dispute resolution processes, and the provision of flood insurance.
"The devastating floods in Queensland, NSW and Victoria last summer showed how vital it is to get flood and other disaster insurance right. The Review's recommendations are a good place to start in mitigating the risk of disasters and making sure everyone has the appropriate insurance arrangements to set them on the path towards recovery after disaster strikes," Mr Shorten said.
For more information please click through to the full media release on the Treasury website.
Fixing flood insurance
15 November 2011