REP 7 Consumer understanding of flood insurance
Released June 2000.
Recent major floods across Australia have raised strong community concerns about the extent and availability of cover for flood damage in house and contents insurance policies. The effects of flood can be devastating and may result in the loss of homes or in extensive water damage to buildings and contents. It is therefore vital that consumers understand exactly what their insurance policies do and don’t cover.
In this paper, ASIC reports on the results of a national project conducted to review:
- the adequacy of disclosure;
- industry sales processes; and
- some aspects of claims handling for flood insurance.