More Householders are taking out Flood cover

According to new data released by the Insurance Council of Australia (ICA), many more consumers with householder insurance now have policies with flood insurance included.

Nearly four in five Australian household insurance policies now have flood insurancereported ICA chief executive Rob Whelan. He said the data demonstrates the variety of policies in flood insurance available to all Australian property owners, formatted to suit individual circumstances. Consumers are making well-considered decisions about their risks and their insurance requirements.

The home and contents insurance market is highly competitive. Consumers can choose to purchase products with flood cover as a standard inclusion, products that allow the customer to opt out of the flood component, or products that exclude flood from the policy, according to Mr Whelan.

The purchase of flood insurance had grown significantly since 2006, said Whelan, when it was a relatively new residential product and only 3% of policies had flood cover.

Approximately 7% of Australian consumers have some exposure to flood risks.

This data is the first in a quarterly set submitted to the Commonwealth Treasury by the Insurance Council of Australia, as part of an insurance industry undertaking to help the Federal Government monitor consumer choices concerning the purchase of residential flood insurance policies.

The data shows active policies as of June 30, 2012, and includes a breakdown of policies issued in the quarter to June 30.