Latest storm brings hundreds of claims
THE soaring costs of insuring property are once more in the spotlight as the mop up continues after Ex-Cyclone Alfred’s damaging journey through the Scenic Rim.
Hundreds of residents in the region have started lodging storm insurance claims.
Some, however, when faced with a massive increase in their premiums decided to take the risk and are now left with a repair bill to cover themselves.
Household insurance costs across the country rose 11 per cent over the year to December 2024, which was actually a slight moderation in what has been a soaring expense since inflation began running hot.
The ABC reported Insurers are claiming their rising costs are in part because of the increasing frequency and severity of natural disasters.
Last month the insurance industry called on the federal government to establish a $30 billion ‘flood defence fund’ that could be used to reduce risk for homes in flood prone areas through building levees or other mitigating measures.
While local property owners are rightly complaining about rising insurance costs they are at least better off than those who live just across the border in NSW.
In NSW home owners are triple taxed on their insurance premiums, once by the federal government and twice at state level.
The three taxes involved are an emergency services levy, stamp duty and GST.
Queenslanders are not hit with the emergency services levy, but are charged the other two taxes.
Insurers are now under massive political pressure to justify their part in sky-rocketing premiums.
The industry made almost $970 million in profit last year on home insurance policies, according to the latest figures from the prudential regulator, APRA.
It’s a dramatic turnaround from the heavy losses sustained by insurers after the 2022 floods which hammered homes across Northern NSW and South East Queensland.
Those floods were the costliest insurance event in Australia’s history resulting in $6.4 billion in insured losses and more than 245,000 claims.
