Nationals Member for Benalla, Bill Sykes has again urged people hit with massive flood insurance premiums to explore all options.
Dr Sykes has renewed this advice following a meeting with SunCorp Insurance representative and fellow Nationals MP’s including Tim McCurdy, Member for Murray Valley.
Dr Sykes said, “It is clear that different insurance companies have different policies with respect to assessment of flood risk and premium setting.
“Some insurance companies are insisting on compulsory flood insurance while others allow clients to opt out of flood insurance.
“Some have factored extreme flood events (for example, up to a 1/10,000 year flood event), whereas others are working on the more commonly used 1/100 year event.
“Similarly insurance premium increases for flood cover vary from very little up to 1000 per cent.
Dr Sykes also said that people should explore accepting a larger excess on their insurance cover or capping flood damage payouts.
Dr Sykes concluded, “Shop around for the flood insurance cover which best suits the risk of flood, your attitude to risk and what you can afford and make sure you fully understand the extent of insurance cover when you make your choice.”

“‘Shop around’ if you can’t negotiate satisfactory flood insurance with your existing insurer” is the advice from Bill Sykes, Member for Benalla.
Dr Sykes offers this advice following a meeting between himself and Tim McCurdy, Member for Murray Valley and Paul Northey, General Manager, Insurance RACV.
“I appreciate Mr Northey explaining RACV’s approach to flood insurance,” Dr Sykes said.
“RACV have considered the possibility of extreme flood events in calculating their flood insurance premiums. These events may occur as infrequently as once per 10,000 years.
“Whilst most damage is caused when floods go above floor level, RACV have also factored in the cost of claims for lower level floods.
“RACV have taken a business decision to make flood insurance compulsory to avoid uncertainty during the stressful time after flood and/or storm damage.
“RACV acknowledge that the flood data is of varying degree of accuracy and are committed to ongoing improvement.”
Dr Sykes continued, “Based on this clear statement of RACV’s (and some other companies) position I advise people to attempt to negotiate a flood premium which they consider acceptable with their existing insurer.
“If these attempts are unsatisfactory then I encourage people to ‘shop around’. Other companies are offering optional flood insurance and the option of accepting a higher excess to reduce premiums should be explored.”
Dr Sykes concluded, “RACV and some other companies have made a business decision to make flood insurance compulsory and they have factored in quite low probability events into their premium setting.
“If people are not satisfied with the resultant premium then they should ‘shop around’ other insurance companies.
“Whatever people finally settle on they should make sure that it is in writing and that they understand the extent of the cover which they have purchased.”