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February 1, 2011 Leave a comment? Go to comments(0)

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Does any insurance company cover rising ground water? ie: heavy rain, not necessarily at home site, causes all water systems to fill resulting in no run off, water table rises (sandy soil) and inundates home.

Feb. 15, 2011

We have not examined policies with this question in mind. It will be a qn of policy interpretation - and a different answer in each case. It may fit the definition that excludes river flooding in some policies and it may also qualify for cover under those policies that exclude river flooding but allow for flash flooding.

In reference to buyers terminating contracts due to properties being uninhabitable from the recent floods. In Qld at least, the insurance on the property is the responsibility of the buyer the day after signing the conract and well before settlement. So whose insurance company is liable for the fix-up and if as I'd assume from this requirement, it is the buyers insurance, why can they withdraw?

Feb. 2, 2011 by Catherine O'Keeffe, QLD

Catherine - If there are 2 insurance policies, the insurer for whoever (buyer or seller) has liability for the loss, will have to take on responsibility under that policy. But its not necessarily the case that the buyer becomes responsible immediately after signing the contract as you suggest. See http://www.cartercapner.com.au/blog/?p=1096

In regards the Floods in Brisbane and moving forward from your blog items. I wonder about the councils role in the preparation and enforcement of the Q100 levels for those flood victim that purchased and build in area's that were flooded but the Q100 was significantly lower than 2011 and in hindsight 1974 etc?

Feb. 17, 2011 by Paul Ravaillion, Queensland

My understanding is that the BCC provides information about a Q100 flood (which 1974 was) and then its estimate of the mitigation affect of Wivenhoe Dam on a flood of that intensity. The council allowed building based on the estimated mitigation effect. I am not aware of any evidence that shows that this estimation was wrong. The flooding of such properties does not of itself proves any error. The 2011 flood may have been a Q120 or Q150 flood.