Insurance in Flood Prone Areas

There’s an interesting letter in SMH on Tuesday, “Without a payout, landlords are left in the lurch too”.
Ten years ago the writer bought a house in Graceville, Brisbane, as an investment, without being told that it was in a flood prone area. "We have since discovered the real estate agent is not bound to disclose this information." It continues “On further investigation we have discovered there were protests about our develoment in 1998, which were dismissed by Brisbane City Council." The developers, of course, would build happily if the Council okayed the land.
The problem is, of course, that the Wivenhoe dam was meant to handle flood water and prevent Brisbane flooding ever again. So the Council arguably were right not to put "flood prone" on the relevant 147 certificates for those properties. It appears that Wivenhoe was not utilised to its optimum in controlling the flood water, and it may turn out that the developers were justified in building there. It will be interesting to see what the inquest into all this finds.