A RULING has handed an Ipswich family a $100,000 flood insurance payout in a David and Goliath like legal battle.
Goodna couple Les and Lois Cameron, whose home like many others was devastated by the January 2011 floods, took their case to the Financial Ombudsmen Service and won.
It gives hope to people in and around Mill St and proves flawed evidence used to deny claims.
Cr Paul Tully said the decision should give flood victims optimism of securing remittance, but RACQ Insurance and the ombudsman said the ruling does not set a blanket precedent.
The Financial Ombudsmen Service (FOS) overturned RACQ Insurance's decision not to pay out the Cameron's insurance claim.
The FOS found flash flooding, covered by their policy, not riverine flooding, had inundated their home.
The ombudsman decision cannot be overturned.
FOS lead ombudsman John Price said the body has finalised more than 800 disputes regarding the 2011 floods, 60% of those were found in favour of the insurer.
While the decision has given her family financial security, Mrs Cameron said it was a decision to give every flood-affected person hope.
"It's about the people because others now have hope, where they didn't have it before," she said.
The Camerons held insurance policies with RACQ for 10 years, but have since changed companies.
Cr Tully described the decision as a win for the battlers in their fight against insurance companies.
"I urge all flood victims in Ipswich and Brisbane whose insurance companies refused to pay out their claims to now appeal those decisions to the FOS," he said.
RACQ Insurance executive manager Mike Sopinski said the ombudsman's decision does not set a legal precedent.
"We have always said we will fully abide by the umpire's decision," he said.
Maurice Blackburn Principal Damian Scattini said the firm's class action against the Queensland Government is not affected by the decision.