After being hit with huge floods, the town of Forbes in central New South Wales was declared a 'catastrophe; by the Insurance Council of Australia yesterday.
Insurance Council of Australia (ICA) spokesman Campbell Fuller said the organisation had declared the flooding in Forbes a 'catastrophe', which meant insurers would deal with claims from the region as a priority.
While this is great news for the residents, some of them will unfortunately, not be covered for flood insurance.
While extreme flooding can be a rare event in some areas of Australia, when it does happen huge amounts of damage can be caused.
To understand more about what the different kinds of water damage are, and what you can be covered for, NRMA Insurance have made this short animated video.
If you're not sure whether you're Home Insurance covers you for flood, speak to your insurer or check your policy details.
Find out how to prepare your property for storms, cyclones and floods here.