RESIDENTS of Werribee’s Vaina Street are in shock after receiving massive house insurance increases because they are considered to be living in a flood zone.
The street, which is several kilometres from the Werribee River, has been declared a flood risk by Melbourne Water, prompting a large increase in insurance premiums.
One resident, who asked not to be named, said his contents insurance had risen by 142 per cent since last year. The resident rents a house in the street and last year took out renters insurance with CGU for $35 a month. When his renewal notice arrived in September, his payments had increased to $85. When he questioned the increase, CGU told him it was because his house was at risk of flooding.
“It was a shock. I live at the northern end [of the street] and the river is at the southern end.
“There is an embankment and another street between Vaina Street and the river.
There is no way that river is going to cause flooding in this street,” the resident said.
“For it to flood there would need to be a Noah’s Ark situation. There are long-term residents who say they have never seen the street flood.”
CGU said insurance premiums had increased because the company introduced automatic flood cover into its policies in February this year.
Spokesman Sean Sampson said CGU used government and council inundation maps, as well as its own research and modelling, to determine which areas were at risk of flooding. “If customers disagree with our flood assessment they are welcome to contact us and provide any additional information they feel may assist in our knowledge of the flood risk.”
Wyndham chief executive Kerry Thompson said the council was not responsible for flood maps. “Melbourne Water determines flooding areas based on their mapping and data.”
She said the council had carried out mitigation work in the early 1990s, including the construction of a levy bank, to prevent flooding in the area.
