INSURANCE NIGHTMARE: Mossman businesses face flood claim refusals
STORMWATER OR FLOOD?
The future of several Mossman shopfront businesses hangs in the balance as they wait to hear if insurance claims they’ve submitted from the recent Cyclone Jasper-related flooding will be paid.
In some cases, there are outstanding claims in the tens and even hundreds of thousands of dollars.
Any go ahead for payments of the claims by insurance companies will mainly hinge on a report by a hydrologist appointed by a number of insurance firms who visited Mossman yesterday (on Wednesday) to see several business owners as part of his assessment.
The professional’s visit was mainly to look at whether damage was caused by floodwater directly from the Mossman River - or stormwater (rain water).
From an insurance industry point of view –the difference between storm and flood is a very important difference and can simply mean that a claim might not be paid, depending on the policy a business has taken out.
Put simply, most policies distinguish between damage caused by flood water – that is, water escaping from rivers, creeks, dams, lakes and other watercourses, and storm water – that is water escaping from drains and the like, and rain water which has nowhere else to go.
Some policies exclude, and will not cover or provide limited cover only, for damage caused by flood water.
At least one business which preferred not to be identified for this article has told us that their insurance claim from the post-Jasper deluge could amount to close to $200,000, and that if the claim is refused, they will most likely have to reconsider continuing to operate.
Support local journalism
If you’d like to support our journalists and independent journalism in the Douglas Shire please support Newsport by hitting the Support Us button on the top of the page.
Thank you!
Newsport thanks its advertising partners for their support in the delivery of daily community news to the Douglas Shire. Public interest journalism is a fundamental part of every community.
Got a news tip? Let us know! Send your news tips or submit a letter to the editor here.
* Comments are the opinions of readers and do not represent the views of Newsport, its staff or affiliates. Reader comments on Newsport are moderated before publication to promote valuable, civil, and healthy community debate. Visit our comment guidelines if your comment has not been approved for publication.