One fifth face flood risk, says insurer

Around 20 per cent of homes on the Peninsula have some risk of flooding and were more expensive to insure, according to a national insurance company.

A spokesperson for GIO Insurance Australia said its insurance premium was based on a "robust" flood rating system that determined the specific flood risk of an individual property.

"Our flood data shows that around 20 per cent of homes in the 2256 and 2257 postcodes areas have some risk of flooding," the spokesperson said.

"GIO's investment into developing a robust flood rating system means that we are able to determine flood risk right down to an individual property level.

"This means our pricing is determined by the specific flood risk of each individual home and not simply calculated at a postcode level based on the wider surrounding area.

"As such, only customers whose homes are at risk of flood will see an impact on their premiums as a result of flood cover.

"The extent of the increase will be determined by the level of risk."

The spokesperson said GIO was able to offer flood cover for every home in Australia as it was engaged in substantial research that allowed for accurate pricing based on the likelihood of a flood occurring.

"We use information collected from a wide range of independent sources, including Willis and Risk frontiers, the Insurance Council of Australia, terrain mapping data and expert hydrologists.

"While flood cover could potentially increase home and contents premiums for some GIO customers in high risk areas, it should be noted that a range of other factors may also contribute to premium increases, such as increased rebuilding and reinsurance costs and/or other serious weather events.

"If a customer believes we have made an error in the flood risk assessment of their property, we have a process in place to review the details and would encourage them to contact us to discuss their individual circumstances."

Press release, 23 Sep 2010 Victoria Rooney, GIO Australia