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ARTICLE · 22 SEPTEMBER 2012

'Flood' defined in Insurance Contracts Regulations

Hall & Wilcox
Hall & Wilcox
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The amendments will come into force in 2014 to allow time to update relevant documents and implement necessary changes.

AustraliaInsurance
Kimberley Nash
Kimberley Nash

In our December 2011 edition of Insurable Interest, we reported on the passing of the Insurance Contracts Amendment Bill 2011 which provided for the implementation of a standard definition of flood, and the requirement that insurers provide a Key Facts Sheet with home insurance policies.

To this end, on 19 June 2012 the Insurance Contracts Regulations 1985 were amended to prescribe a standard definition of flood for certain insurance contracts. Insurance contracts affected by the amendments cover home buildings and contents, damage to strata title residences (such as apartments), and loss of equipment, stock, inventory or premises of a small business. However, if the insurance contract was arranged by an insurance broker, who did so in the course of providing financial advice, the prescribed definition will not apply.

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