We have received many phone calls from clients who are confused over the definition of flood and whether this is covered under their
CHU Policy.
The answer to this is flood is not covered under the policy as stated in the definition below.
"Flood" means when water that is normally contained in a Water Catchment System increases because of rainfall or snow melt
(whether in the immediate region or elsewhere) or is deliberately released by an authority, and the water overflows onto land that is
not normally covered by water.
Water Catchment System means:
(a) A river, creek, other natural watercourse or lake, whether they are in their original state or have been modified, are named
or unnamed, or normally dry that only run during periods of rain;
(b) A dam, reservoir, storm water channel or canal.
The policy also excludes any damage caused by any action of the sea, high water or high tide, storm surge or tidal wave.
If you require flood cover we can contact the insurance company for a quote to include this in the policy.
The procedure is usually for a surveyor to be appointed to assess the risk, look up reports of previous flooding, etc.
If the threat is too high the insurance company will decline to cover this additional risk.
(a) Resultant water damage caused by storm, tempest and rainwater, e.g. overflowing of gutters, stormwater running off the
pavement/road etc.
(b) Loss or damage to insured property caused by a Tsunami.
"Tsunami" means a sea or ocean wave caused by an earthquake, earth tremor or seismological disturbance under the sea.
If you have any queries, please contact our Insurance Division on (08) 8372 2777 or email insurance@stratadata.com.au.
Source: CHU Policy 102520-05/09.