This article discusses the lack of a formal procedure for self-insuring flood cover in Victoria and the risks associated with it.
Question: A retirement village along the Maribyrnong River cannot get flood insurance. What procedure do we follow to self insure for flood?
Our retirement village along the Maribyrnong River cannot get insurance for flood. Do we need to self-insure against flood? If so, what procedure should we follow?
Answer: There is no procedure for self insuring flood cover other than following standard processes for voting and approving the insurance.
In Victoria, there is currently no legal requirement for an owners corporation to insure for flood, and there’s also no formal process or government registration required to self-insure. That said, self-insurance does carry considerable risk, particularly in flood-prone areas, such as along the Maribyrnong River.
If you and other residents would prefer to have flood cover, the most effective way forward is to exercise your democratic rights through the owners corporation. That may involve:
- Finding a suitable insurer or broker who can offer flood cover (even if at a higher cost or with conditions).
- Lobbying other lot owners to support a motion at a general meeting to take out the cover.
There is no procedure for self insuring flood cover other than just following standard processes on voting and approving the insurance.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in Strata News #766.
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Read next:- NAT: Not covered for Flood? Here are some things you need to know
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- VIC: Q&A Owners Corporation Insurance Requirements Victoria
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