Arriving in March, La Nina hit communities in eastern Australia with ferocity.

The weather event was anticipated by forecasters and saw non-stop heavy rain across New South Wales and southeast Queensland. As the situation worsened and intense flooding ensued, thousands were evacuated from their homes.

While recovery efforts were underway, for many households and businesses, the future is uncertain. After being severely impacted, they are eager to get back on their feet, but if they have no flood cover behind them, it’s an uphill battle.

It was the 2011 Brisbane floods that first led insurers to adopt a standard definition of flood, which could be understood by both brokers and consumers. Even so, in the event of a flood, the wider community is often still perplexed about what the term means for risk protection, particularly those in high-risk areas.

Unless the customer chooses to go without, standard home insurance policies now routinely include flood cover. However, commercial policies are different in that the insured must usually opt-in for the inclusion of flood cover.

Most commonly, those that decide against getting flood cover do so to save on costs. This appears harmless, until the day comes when they need to make a claim. The recent flood disaster in Queensland and New South Wales has shown the true risk of going without such protection.

If a business or home floods, the cumulative cost of annual insurance premiums likely wouldn’t come close to that of repairing the damage caused.

At first glance, flood insurance may not stand out as an affordable option. But this premium takes into account the very high costs endured by insurers when funding the restoration of a home or business after flooding.

As defined by the insurance industry, flood is the “covering of normally dry land by water that has escaped or been released from the normal confines of any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or any reservoir, canal, or dam.”

There is different cover available for flood damage, storm damage and rainwater damage. Being covered in one area doesn’t necessarily mean you’ll be protected against the fallout that follows severe weather events of this nature.

It’s important to fully understand what is covered under your policy, and what isn’t. Being prepared is the key to keeping your business afloat in the months after a flooding disaster by rectifying any damage.