Insurance is of course no more than a contract agreed between
parties, so each claim will turn on its specific facts and policy
wording. However, similar issues are likely to arise in a large
number of claims.
Flood or run-off?
The awesome destructive power of the river in flood emphasises
why some insurers will not offer standard flood cover in known
flood plains or will insist upon payment of very high premiums for
such an extension of cover. Damage by flood is often specifically
excluded from cover in Australia.
Although the definition of 'flood' differs from policy
to policy, some simplification in interpretation of policy wording
is seen in situations such as in the recent flooding in Brisbane,
where the majority of flooding occurred after or far from the
relevant rainfall. The eerie situation of rising river levels under
bright sun and clear skies will in most cases leave little doubt
that a flood has occurred rather than damage from storm, tempest
