We’ve talked before about how a flood report can help you when building in a flood zone, specifically, by warning you about your flood risk and offering you solutions that you can integrate into your construction plan to reduce your risk.
We’ve also discussed how a flood planning certificate can help you make your final decision when deciding whether or not to purchase a parcel of land by telling you about the property’s flooding risk.
However, that isn’t the only way your flood report can be a big help when buying or building.
Once you sign the dotted line or put the finishing touches on the property, you’re going to need to get the place insured.
And in many cases, your insurance company may require you to submit a flood certificate alongside your home insurance application.
The role your flood certificate plays in insurance
Insurance providers may ask for one
Why do insurance providers care about flooding? Simple: it influences how likely it is that they’ll have to pay out in the future!
As we all know, ‘high risk” insurance applications (that’s to say, a higher probability of requiring a payout in the future) usually come with:
- Higher insurance premiums
- Higher excess charges
- Smaller insurance payouts
They’ll look at a lot of different things when assessing your risk like bushfires, surrounding trees, weather conditions, and of course, your flood risk.
And the first step there is to begin by looking at your flood certificate report.
By looking at your flood report, your insurance provider can determine…
- Historical flood levels
- Zoning - is the property in a designated flood zone?
- Elevation and topographical information
All of this can impact your risk, and help your insurance provider decide whether or not to accept your application, as well as what the details will be.
Of course, it isn’t just insurance providers that can benefit from a flood report…
Do you need flood cover? Your flood certificate can help you decide
If you live near a waterway, a flood policy is absolutely essential.
But as anyone living in regional Australia can tell you, oftentimes it isn’t just properties directly next to rivers that are at risk of flooding.
The only way to find out (without living there and experiencing a flood for yourself, that is) is to perform a flood certificate search.
- Elevation
- Drainage points
- Water collection points
- Slopes
Most importantly, in addition to historical flood levels, a certificate can also tell you about factors unique to your parcel of land:
Even if you don’t live in a flood zone proper, each of these factors can result in your home flooding anyway, as anybody who’s ever lived at the bottom of a hill can attest to.
A flood certificate can help you identify these issues, and thus help you decide whether or not you should add flood cover to your insurance policy.
Bring down your insurance premiums by building floodproofing into your home
One of the best ways to bring down your insurance premiums is to ensure that your property has measures built into it to protect you against flooding.
That can mean:
- Building on top of hills
- Working around minimal floor levels
- Using stilts (think those iconic Queenslander homes)
- The flow rate velocity for your property
- Building drainage systems
The exact measures you’ll need to take will be laid out in your flood certificate - all the more reason to get your hands on one before you start building or renovating.
Not only does this protect the property from flooding, but it can simultaneously bring down your insurance premiums!
Like we said before, insurance companies love low-risk applications. And a property that’s less likely to suffer flood damage - even if it’s situated in the middle of a flood zone - may be given a better deal on insurance.
Starting your flood certificate search
So now you know why getting a copy of your flood certificate can be so important when it comes to insuring your property.
Now for the next question: getting your hands on one.
You don’t get this from your local council or shire - instead, these certificates come from either your area’s:
- Catchment Management Authority - the body responsible for planning and coordination of water, land and biodiversity in your area
- Statutory body - the government organisation responsible for managing your area’s water resources
Obtaining a copy of your report isn’t hard. The problem arises when you need to get your hands on multiple pieces of land information at once - a somewhat common occurrence when filing an insurance application.
A lot of the time, your flood certificate might need to be complemented by a velocity flow rate, a document that tells you how quickly water might move through your property in the event of a flood.
In other cases, you might also need to send in other types of property information such as a bushfire attack level (BAL) report to assess your risk of bushfire.
Making the search for your flood certificate a breeze
Whether you’ve just finished construction or want to change to a different insurance plan, you’re going to need documentation
It isn’t uncommon to feel like you’re being flooded (no pun intended!) by the amount of documents you’ll need when applying for an insurance policy..
Oftentimes, it won’t just be a flood planning certificate you’ll need to get your hands on.
If you’re building for example, you won’t just need different documents to make an insurance application - you’re probably going to need all sorts of information for the planning and execution of your project.
Luckily, we’re here to make that process easier!
Thanks to our automated, all-in-one document search system, all you’ll need to do is:
- Create an account
- Select what you need from a drop-down menu
- Wait for everything to turn up
Thanks to our connections with databases, statutory bodies and government agencies, we’re able to get you the information you need in a timely manner.
Whether you’re building, buying or selling, let our property information service help.
Click here to start your search - all you need is an address.
Alternatively, ring our team (03) 8527 6300 or cget in touch online for answers to your questions.
The information in this article is general in nature and does not constitute legal advice. As with all things property, we strongly recommend consulting a professional to ensure that all stages of your building project (including the Title search) go smoothly.