Flood insurance: 2480 postcode rated too risky
A RE-CLASSIFICATION of the entire 2480 postcode as flood prone was the reason given to Caniaba resident Glenda Parker for her insurance company's recent refusal to renew her home insurance policy.
That's despite the fact that she lives on top of a large hill that she says has and would never be affected by a flood.
Ms Parker said her biggest concern was finding an alternative insurance company.
"I'm very angry," she said. "It puts you in a bad position.
"Now I've got to find someone who's going to insure me because the first thing another insurance company says is why have you left the last one?"
Ms Parker, who has lived in her Pelican Creek Rd property for 24 years, said when she queried the insurance company, Real Insurance, about why they had refused to renew her policy, she was told the underwriters of the policy had recently classified all of 2480 as flood prone.
In a statement, Real Insurance said decisions to classify properties as flood prone can be based on a number of factors including the level of risk the company is willing to accept.
"Insurers have access to technology and data that allows them to gauge the level of exposure, for example, flood or fire prone properties," the statement said.
"Underwriting decisions are made based on this data and which locations the insurer can cover or not.
"Unfortunately the location in question falls within a high risk area according to Hollard's (the policy underwriters) risk assessment, and as such we have chosen not offer home and contents insurance to that location."
Ms Parker is the latest Northern Rivers resident to come forward with concerns over her insurance company's classification of her property as flood zone.
Several local councils have spoken out about the discrepancies between their detailed and publicly available flood mapping and some insurance company's use of the term 'flood zone' for properties which their data shows would never be affected by flooding.
Several local councils have spoken out about the discrepancies between their detailed and publicly available flood mapping and the contradictory flood mapping data of some insurance companies used to increase flood insurance premiums.