Draft regulations to introduce a standard definition of “flood” for insurance contracts of home building and home contents (combined and individual policies), small business, and strata title insurance policies pursuant to the Insurance Contracts Amendment Bill 2011 have been released for comment.
The regulations include the proposed wording of “flood” to be used in these insurance contracts:
Flood means the covering of normally dry land by water that has escaped or been released from the normal confines of:
A. any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or
B. any reservoir, canal, or dam.
