Flood-Hit NSW Residents Struggle with Skyrocketing Insurance Premiums
Residents on the NSW Mid North Coast are facing the daunting task of rebuilding their lives after recent floods, with many discovering that their insurance premiums have become unaffordable.
Glen Schmidt and Cindy West, who lost their Wingham home to the floods, are among those struggling. Despite preparing their property with over 150 sandbags and bilge pumps, the floodwater still reached 1.6 meters.
The couple had insurance when they purchased their property two years ago for just over $2,000. However, they found the renewed premium of $28,000 unaffordable and had to forego coverage.
“How can you find $28,000 to insure your property?” Ms West questioned, highlighting the widespread issue among homeowners in the region.
Craig and Debbie Emerton, dairy farmers from Croki, experienced “total devastation” on their property. The floods were the worst they had encountered in their 35 years of farming, with water reaching 900 millimeters inside their house and resulting in the loss of about 50 cattle.
The Emertons, like many of their neighbors, were uninsured due to prohibitively high premiums.
“As residents in a flood plain, the premiums are so high that the majority of people can’t afford them,” Mr Emerton said.
The Insurance Council of Australia CEO, Andrew Hall, attributed the rise in premiums to record weather events, claim numbers, and building inflation.
“We’ve seen a massive change to the cost of insurance in this country,” Mr Hall said, noting that around 6,000 insurance claims had been lodged, with the number increasing by a thousand each day.
The Insurance Council is calling for a $30 billion flood defence fund over 10 years to help communities through measures such as flood levees, house raising, and property buybacks.
While Prime Minister Anthony Albanese announced a one-off $1,000 payment for affected residents, many felt it was insufficient.
“A thousand dollars is better than nothing, but when you have nothing, it doesn’t go very far,” Ms West said, reflecting the sentiment among those who lost everything in the floods.
