Floods Are Devastating Unit Complexes<< Back to Blog
In the recent floods it became apparent to many people that they were indeed NOT covered with flood insurance. Unit complexes and Body Corporate are some of these victims who had not taken the time to read their policy documents and ensure full coverage. In fact, with Body Corporate, it is not an easy task to obtain flood insurance at any rate. There are many locations that flood cover would prove extremely difficult to offer because flooding is “inevitable”. Where insurers have offered it (on an exceptional basis) take up has been poor because the price has proven to be prohibitive for the Body Corporate.
One of the most prominent Body Corporate insurers recently wrote to all its clients regarding flood insurance under their “standard policies”. They state “Although insurers’ definition of flood do vary, CHU’s is clearly defined in its Policy wording: Flood means when water that is normally contained in a Water Catchment System increases because of rainfall or snow melt… or is deliberately released by an authority and water overflows onto land that is not normally covered by water. A Water Catchment System is defined as 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 a period of rain.
They are also defined as a dam, reservoir, stormwater channel or canal.” The next item under discussion is the responsibility of the rectification of internal damage caused by floods within Units themselves. It is becoming apparent under the legislation and its interpretation that the unit owners individually will be responsible for rectification of walls, skirting and other items that would normally be considered Body Corporate as these items were deemed “uninsurable” and responsibility then extends back to the individual owners.
This is still a developing issue as more and more claims are being directed to the Commissioner for Body Corporate and the CTIQ is becoming more aware of the difficult circumstances of Bodies Corporate. The Board of the CTIQ including myself, are constantly being updated by the Qld Government and the various Insurers on the ramifications of these recent floods and we will continue to advise our Clients of their best opportunities and availability of compensation for flooding circumstances.