Federal Member for Mallee Anne Webster has welcomed the response of insurance companies to her request to provide relief for home loan applicants in Sunraysia postcodes.

Due to the current Murray River flooding all insurance companies had placed an embargo on Sunraysia area post codes which prevented people from either purchasing new or changing existing insurance.

This prevented home loan applicants from reaching settlement on their properties due to mortgagee lenders and banks needing insurance on properties as security.

“I have been in contact with peak industry bodies on this issue to go into bat for home buyers so they can continue their purchase and given the embargo, suggested they carve out the flood damage clause so that insurance can cover can still be purchased. I am glad NRMA and RACV have now adjusted their embargo in response to that,” Dr Webster said.

Mortgage lenders and banks have been informed of this insurance option, with insurance companies to now accept new policies in Sunraysia flood affected areas.

“With this flood emergency not likely to be over quickly it eases the minds of people who were potentially looking at losing deposits which could have been in the tens of thousands of dollars,” Dr Webster said.

“Anything that helps people achieve the significant milestone of buying a home is certainly a good move.”