Reply With QuoteI dont envy the position the insurance companies are in at the moment, but given that its not exactly a secret that these houses are in a flood prone area they should have expected that floods would occur, and this one wasnt as big as the 74 flood.
Swaggie
Looks like that AAMI will not insure any more properties in the 4670 post code which is for the Bundaberg region including Moore Park Beach among other other places that do not are affected by floods.
I just wonder what happens now with APIA, RACV and other insurance companies fully underwritten by AAMI.
Interesting times ahead........
Swaggie
I dont envy the position the insurance companies are in at the moment, but given that its not exactly a secret that these houses are in a flood prone area they should have expected that floods would occur, and this one wasnt as big as the 74 flood.
The 4wd Zone/Opposite Lock Bathurst
263 Stewart Street, Bathurst, NSW
http://www.the4wdzone.com.au/
Discounts for AULRO members, just shoot me a PM before you purchase.
ChatterBox
While I agree with the sentiment, the simple fact is that is what insurance companies are there for. Insurance companies combined make billions of dollars in profits a year, which goes to share holders; when something like this happens pay up and dont have such big dividends.Originally Posted by Ace
If they dont pay up then they are taking money fradulently and should be taken to court accordingly. they are in the risk game and no one forced them to be there.
Last edited by blitz; 25th January 2011 at 01:37 PM. Reason: font changed?
SysAdmin (Owner)
huh?
why is it greedy for a business to decide that it isnt worth doing business in a particular area because the risk is too high ? (probably because they cant get reinsurance on the policies they write there i think you will find)
such is life...
surely business has to have some say in where it makes it's money and who it has as customers.
2007 Discovery 3 SE7 TDV6 2.7
2012 SZ Territory TX 2.7 TDCi
"Make the lie big, make it simple, keep saying it, and eventually they will believe it." -- a warning from Adolf Hitler
"If you don't have a sense of humour, you probably don't have any sense at all!" -- a wise observation by someone else
'If everyone colludes in believing that war is the norm, nobody will recognize the imperative of peace." -- Anne Deveson
“What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.” - Pericles
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"The happiness of your life depends upon the quality of your thoughts." Marcus Aurelius
Swaggie
I was referring to the insurance companies knowing its a flood affected area, not the residents. But since we are talking about it the residents buy there knowing the risks also.
When it comes to insurance companies then they should adjust their premiums based on the risks involved. It would be like insuring a house in tornado alley in the US or insuring a house which is built along the san andreas fault line where earthquakes can be a problem.
I agree, if they take the premium then they should be prepared to pay out in the event of a claim.
Matt
The 4wd Zone/Opposite Lock Bathurst
263 Stewart Street, Bathurst, NSW
http://www.the4wdzone.com.au/
Discounts for AULRO members, just shoot me a PM before you purchase.
Swaggie
Why all the 4670 postcode?
I just wonder if they are going to do the same with the 4000 post code and others in a dense populated area.
SysAdmin (Owner)
they already do in some areas i think you will find.
2007 Discovery 3 SE7 TDV6 2.7
2012 SZ Territory TX 2.7 TDCi
"Make the lie big, make it simple, keep saying it, and eventually they will believe it." -- a warning from Adolf Hitler
"If you don't have a sense of humour, you probably don't have any sense at all!" -- a wise observation by someone else
'If everyone colludes in believing that war is the norm, nobody will recognize the imperative of peace." -- Anne Deveson
“What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.” - Pericles
"We can ignore reality, but we cannot ignore the consequences of ignoring reality.” – Ayn Rand
"The happiness of your life depends upon the quality of your thoughts." Marcus Aurelius
TopicToaster
Most likely because they dont have accurate flood mapping, as has been discussed on the news recently.
Master
To a certain extent I agree with you, but I still think the greed is well and truly there because over the past 10 years or more there were lots of insurers which over time were bought out and taken over by the BIG TWO and as a result there are basically 2 big insurers trading under many names.
They were able to create this duopoly at the expense of policy holders who basically funded the consolidation through their policies premiums.
Same as the banks.
No real competition, just the facade of it.
My opinion only.
Swaggie
surely you don't believe everything printed in the paper, i suspect the jerno has put a twist on the story........i'm sure there is more to the story, throw in emotions and you have a front page story
my bet is aami will continue insuring houses in this post code and review flood cover a little more closely i.e. be selective or not at all, excluding flood i sure cover would be available
interesting example in milton brisbane, a friend was covered with suncorp for 'flood' and has been paying a higher premium for the last 7 years to be for this coverage, to date no problems with his claim..........the family next door, same insurer but elected for the cheaper insurance i.e. no flood cover
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