The Insurance Contracts Amendment Bill 2011 has been introduced into the House of Representatives.

Insurance providers will be required to use a standard definition of the term “flood” for riverine flooding in Home Building and Home Contents (combined and individual) insurance contracts and contracts held by small businesses and strata titles. The term “flood” will be defined in regulations.

In addition to existing disclosure requirements for home building and home contents insurance policies contained in the Corporations Act, insurers will be required to provide a Key Facts Sheet, which outlines the key information on what is and what is not covered in respect of the particular home building, home contents or home and contents insurance policy requested by a consumer.

The requirements will commence two years after the day the regulations are made in respect of each of the measures.