Flooding aftermath: Queenslanders slugged huge insurance premium
Queenslanders are being urged to shop around for better prices after their insurance premiums jumped following February’s devastating floods.
Several Brisbane residents have called into 4BC Radio, shocked to discover their home and contents insurance increased to more than $5000, including added-on flood coverage, despite never putting in a claim or living in an home or street that was prone to flooding.
Insurance Council of Australia chief Andrew Hall said the natural disaster in February was the fourth largest natural disaster event in Australian history where 220,000 claims were made, costing about $4.3 billion.
He advised Queenslanders to shop around.
“It’s been a very large and costly event. It also rewrote the record books in terms of flood levels and we’ve seen areas flood that we’d never expected to,” Mr Hall told 4BC.
“What can happen is that some insurers will price on a postcode, they may price in a way because they already have a high level of exposure in an area and that are just not keen to take on more customers in that area.
“We’ve got any years of data and insurers do understand where floods occur and where they don't so what I'd say to consumers is to shop around. If you're getting an increase that’s unreasonable you should absolutely go online and look.”
Mr Hall said each insurer had a different business model with some looking at geographic areas, while others had broader offers.
He said there were also options to opt out of flood coverage.
“Reinsurance is a big driver of cost and we’ve seen in Australia the upward pressure on the cost of reinsurance because we’ve had these ongoing events.
“We’ve had several now in the last decade so it all has a flow on effect.”
In the aftermath of the floods, Mr Hall said insurers looked at what areas had been affected and “learnt lessons” from it.
Originally published as Flooding aftermath: Queenslanders slugged huge insurance premium
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails