Buying & Insuring in a flood prone area?

Jenko

Jenko

Just wondering what the majority do about insuring IP's in flood prone areas?

* Pay the high price of insurance (some quotes I have had where up to $8k)?

* Get a flood zone map and buy out of the flood zone and not insure?

* Or just don't buy in a flood prone area?

* Or something completely different?
 
I would do option 2, but still insure. Why would you not insure such a valuable asset? How are you going to pay off your mortgage without any rent coming in?
 
Yeah that I was wondering, do people take the risk of not insuring for flood?
$8k per year that's $150 per week, okay if your rent covers it but would easily make an IP not viable.

Some places like Emerald most insurance companies don't offer flood cover.
I know our house here in Boyne I would easily give up flood cover yet it's only 200 meters from houses that went under two days ago. Some properties just don't need flood cover.
 
I suppose I did Option 2. I bought well out of the flood zone in Rockhampton and just have regular (no flood) insurance. About to find out if that was a big mistake!
 
Hopefully everything goes okay for you.. It will be interesting to see how accurate the maps are? In Gladstone they said we had a 1 in 2000 year :rolleyes: so if you have a property here and it's okay I guess your laughing that's of course as long as we don't have a 1 in 3000 year flood :cool:
 
No problems with your place this time around Ms. Vultures !!

I see even with the 9m map your place is OK.

This flood is going to be approximately 8.5m.

Cheers
 
Even with flood insurance, your property is going to be far less desirable to tenants if it is in a flood zone, particularly in areas that have had 2 floods in 2 years.
Flood premium quotes have exceeded $12K in some cases.
Marg
 
ments where it is indicated that we cover flash floods which is defined as follows:

"The overflow of any lake,river,creek,stormwater channel, canal or any other watercourse (Whether natural, altered or man-made), caused by a storm where the flooding occurs within 24 consecutive hours of the storm having commenced"

We do cover also storm damage. For details, please see our Home & Contents Insurance product disclosure statements which I have again attached for your reference.
Click to expand...

Is this expectable? Flooding occurs with 24 hours of the storm? Maybe I should buy closer to the river ;)
 
I wouldn't be happy with that wording if buying a low lying or riverfront property in Brisbane.. Flashflooding is very well possible outside of 24hrs of a storm. The release of water from the dams can be long after 24hrs.. and with the last storm the river was rising before the storm even entered Brisbanes cathment area (precautionary measure). Human error can come into play with releasing the dam water..

It would be nice if they considered flooding to be any type of water inundating the residence, at any time.. no ifs or buts or future possible get out clauses.
 
I investigated it with one property which might be in a low lying area and the premium tripled if we added flood cover to it.

I went to check online with suncorp/racq/aami yesterday and currently they quarantined setting up new policies in varying areas until everything settles down. My insurance guy said this is normal and give it a few months.
 
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