The Queensland and NSW floods have caused losses reaching an estimated $2.3 billion. This devastating extreme weather event has deeply impacted many families and businesses.
A survey conducted by the Insurance Council of Australia (ICA) has highlighted a significant level of underinsurance among the affected communities.
The ICA reported on March 21st that insurers had received 153,769 claims, which is a 2% increase from the previous week’s figures.
ICA also released results from a survey of more than 1000 people from three flood-prone areas in southeast Queensland and NSW. The survey found that 37% of respondents say they wouldn’t have enough insurance to rebuild.
Two-thirds of respondents also stated they don’t believe governments are investing enough to properly protect homes and communities from extreme weather events. More than 90% of those respondents said the spending should at least double.
From the survey the ICA reports that an astonishing 94% of people said there should be better controls on where homes are built so they are not at risk of flood.
On affordability and availability constraint drivers, the survey finds 47% say flood cover can be difficult or expensive to obtain due to the risk of flood, one in five says it is driven by insurer profits and 11% cite climate change.
“The Insurance Council has long called for greater investment in measures that better protect homes and communities from the impact of extreme weather,” ICA CEO Andrew Hall said.
“This most recent flood has unfortunately brought this issue into sharp relief, and now those directly impacted have added their voices to this call.”
The ICA survey was conducted from March 11th-14th across the Northern Rivers, Western Sydney and Greater Brisbane regions.
If you wish to discuss your home or business insurance options, you can contact Craig from Business Insurance Consulting.
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Phone: 0412 212 099