The world is sinking as sea levels rise and flooding happens more often. We are now seeing one in one-thousand of years events and houses are ruined, washed away, or otherwise destroyed. Those who re insured are often left out in the cold when they discover that the Insurance Company refuses their request for reimbursement. The reasons given are staggering and range from an Act of God to one forgot to include flood in their policy.
Under normal circumstances one might forget to include flood because they live well away fro a river or creek and their location has never experienced water rise before. This, however, is not a good reason to leave it off as some in the recent flooding of Victoria and parts of New South Wales discovered.
Huge storms and heavy rain sent an ocean of water rushing down from Queensland after the cyclone of 2010-2011. This impacted areas of NSW that left residents stunned. The man-holes in the streets lifted up as water poured out of the drainage system and flooded like creeks rushing through their homes.
The question is what is an act of God when it comes to insurance pay-out? Isn’t all the result of rain and natural events? Well, not exactly! The definition of such is that it is unavoidable through the use of caution and preventative measures. This allows many companies to find a loophole in your policy.
For instance, take the case of a flooded creek beside a property in Wollongong, NSW. This happened as the result of a massive storm but the insurance company avoided the pay-out, and why? Because it was determined that the landscaping around the house acted as channel for the water. This was found to be legitimate because the owner had contributed to the water entering the property.
While such companies have a huge burden on their hands in the light of the number of natural events one wonders whether insurance is the answer. The cost of it is a heavy impact on the hip pocket and if the end result is that one isn’t covered then wouldn’t the money have been better placed in a bank to earn interest over the years the policy had been running.
Insurance is a huge risk and whether or not one can safely enforce a claim the bottom line is that with so many floods and homes destroyed there has to be a breaking point. My answer is not to have insurance on anything but to trust in the Spirit to protect me. After all, if we are talking about an act of God then isn’t that the place to put your trust.