Storm water, burst pipes and leaking appliances are the most common and the most destructive causes of insurance claims.

There’s not much you can do to prevent a flood from happening but most water damage claims are for events that could easily be prevented or minimised.

Here are Austcover’s top tips on how to prevent water damage.

Get the right advice

If you have basic home insurance, you may not be covered for flood or storm damage.

Ask your insurance broker to make sure you have the right policy to protect you against financial loss in the event of serious water damage.

Austcover can provide insurance packages that take into account all your assets including investment properties, businesses, personal property as well as income protection. Not only is this more convenient, but it also means we can regularly ensure all your policies are up to date.

Choose professional installation

No matter how handy you are at DIY projects, it’s always best to have appliances such as dishwashers, plumbed fridges and washing machines installed by an expert, even if you bought them second hand.

These are often the cause of slow leaks, which may be difficult to detect before it’s too late to prevent serious damage.

Think ahead 

Where possible, have your hot water system and hydronic heating systems installed outside buildings.

Know where the mains water tap is located so you can turn it off without delay in case of a major water leak.

Clear the decks

Periodically remove leaves and other debris from roof gutters and prune any tree branches that overhang your roof, especially before the rainy season.

Monitor roof tiles, skylights, vents and chimneys for signs of damage or deterioration.

Outside buildings, check that all stormwater or cut-off drains are well maintained and clear of debris.

Never walk away

Overflowing water from sinks, laundry tubs, showers and baths can cause water damage before you know it, so never walk away from a running tap.

If you’re going away for prolonged periods, it’s best to switch your water off at the mains until you return in case of a burst pipe or leaking appliance causing damage when properties are vacant.

Check the taps and pipes

Leaky connections to hoses and tap fittings can cause serious water damage and so can faulty drainage hoses in fridges, washers and air conditioning units.

Check all are unclogged, well maintained and operating efficiently.

Periodically switch off taps to all water consuming appliances and check your water meter; if the meter hasn’t stopped turning you could have a leak somewhere.

Move it up

Never store electronic equipment or perishable items on the floor, even in the garage, basement or storage areas.

Use shelving or racking to protect them from damage in the event of a water leak or flood.

Although it’s often perceived as a “grudge purchase”, when something goes wrong having the right insurance can mean the difference between struggling to stay afloat and bouncing back quickly.

It’s one of those things we hope we’ll never need, but would be foolish not to have.

We all want the best value for money as well as the peace of mind that comes with knowing both business and income is properly protected.

Insurance doesn’t come as a one-size-fits-all package and it’s often more complicated than simply estimating the amount of financial assistance your business would need to get back on its feet after a disaster and then forgetting about it until you need to make a claim.

The insurance brokers at Austcover can help you make smarter choices when choosing the level and type of insurance for your business.

With lessons learned from the natural disasters that battered Australia during 2011 and the Insurance Council of Australia’s recent campaign strongly urging all policy holders to review their insurance, Austcover Managing Director David Ingram said there was no reason for any business to have inadequate cover.

“The Bureau of Meteorology predicts an 80 per cent likelihood of more tropical cyclones than the long-term average this season, so hopefully businesses and home owners will be better prepared than we were in 2009 when statistics showed that 25 per cent had no insurance at all and 80 per cent of those that were didn’t have the right cover,” Mr Ingram said.

If you’re serious about protecting your business, it’s also important to consider your responsibilities as well as your rights when it comes to your insurance coverage.

“When purchasing or renewing an insurance policy you are entering into a legal contract where both parties are expected to honour certain commitments,” he said.

“As the policy owner, your commitment is not only to fully disclose any previous insurance history but to guarantee that all declarations whether it be turnover or sum insured, are accurate and up-to-date.

“Austcover’s Insurance Brokers will help navigate you through these changes and advise you on how often to review your policy.

Austcover has been helping Queenslanders make smarter choices about insurance since 1987.

Sources:
ICA
http://www.insurancecouncil.com.au/media/38249/111103-check-your-policy-urges-ica.pdf 

BOM
http://www.bom.gov.au/climate/ahead/tc.shtml

Fortunately, the client sought advice on its insurance status during late 2010, one year after moving to another broker as the result of a committee decision to “economise”.

After assessing its insurance status, Austcover found that the club was inadequately insured.

Although it did have cover for material damage, it did not have enough protection for business interruption, so Austcover restructured the Club’s insurance to reflect their specialised requirements.

Austcover Senior Advisor Ray Windsor said as insurance professionals, Austcover aimed to ensure all clients were adequately protected when faced with potential disaster.

“We managed to do this for the Bribie Island Golf Club before a disaster struck, which was within a matter weeks from when they took our advice,” Mr Windsor said.

Last summer’s floods caused disastrous consequences for many local businesses, especially those who had underestimated their insurance requirements in an effort to cut costs.

When the water table rose during the heavy rains, it engulfed Bribie Island Golf Club’s sand-based golf course and rainwater spilled onto the fairways, greens and bunkers, causing extensive damage.

The course was closed to golfers for more than two months, resulting in loss of gross profit in the areas of catering, gaming and bar sales.

“Because Austcover does much more than just match businesses in the hospitality industry with the right insurance cover, it was able to shoulder most of the burden for the client and eliminate the stress of dealing with insurance companies at a difficult time,” Mr Windsor said.

“Austcover’s skilled and highly professional claims team acted as a conduit between the Club and the insurer, attending meetings with loss adjustors and handling all aspects of the claims process.

“It’s always a pleasing outcome to welcome back a valued client, and in this case, we were very happy to negotiate a successful and substantial claim for them.”

Mr Windsor said insurance needs of businesses within the hospitality industry were specific, and in most cases needed to be tailored to suit the unique requirements of each client.

“While many restaurants, recreation facilities and entertainment venues were cleaning up after the big wet last year, some also faced uncertainty about whether or not their insurance would cover them for water damage as well as loss of income.

“We’re happy to have protected the Bribie Island Golf Club from that uncertainty.”