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FLOOD VICTIM: Goodna resident Allan Kunst has
found his insurance premium has gone up
since losing his home in the 2011 floods |
FLOOD-AFFECTED residents of Enid St, Goodna say their home insurance premiums have gone through the roof and they will never be able to sell their houses.
Damian Main lost his home and business in January 2011, and upon renewing his home insurance premium with NRMA he was gobsmacked to find it had increased from $800 a year to $8000.
After recent flood events in Queensland and New South Wales, consumer watchdog Choice reported 89% of respondents to its latest insurance review said their insurance premiums had risen by 20 to 30%.
"We've heard anecdotally of people facing increases of up to 1000% for home and contents cover," Choice spokeswoman Ingrid Just said.
A year and a half on, Mr Main was still cleaning up his property as his insurer refused to cover him after the disaster, except for the delivery and two weeks rent in a temporary donga his family lived in.
"Who can afford $8000 a year, how can they justify that?" he said.
"Over 10 years, that's $80,000. I can't see another serious flood coming in 10 years."
Mr Main said he was at a loss with what to do and had spent the last few months ringing around getting quotes.
"I got a price from Suncorp after the floods and they would cover me for $6300, then recently they gave me a price for $3000.
"I don't know why there has been such a big change, but that is still too expensive for us to afford on one income."
Down the road, retiree Allan Kunst's insurance premium had nearly doubled from $360 per year to $701.
Mr Kunst said he held a policy with Suncorp for 23 years and in 2010 swapped to Real Insurance due to rising premiums.
"We thought we were insured for $196,000, but after the floods, the maximum they would pay out was $15,000," he said.
"The water went nine metres over our roof and no one else will insure us now.
"We can't sell the house as no one can get the capital to buy it because you've got to get flood insurance.
"By law, I have to tell any buyer how far the water went over my roof.
"We can't do anything else."
Choice's report into home and contents insurance identified positive moves by the insurance industry set to benefit consumers, including an agreed definition of flood and a decision to introduce a key facts sheet to help policyholders understand what they are covered for.
"We also want the industry to work towards simpler product disclosure statements and policies that are more easily comparable," Ms Just said.
One issue still unresolved is whether or not flood insurance should be mandatory or provided on an 'opt-out' basis.
"There's no easy answer on mandatory flood insurance - people who have a low flood risk don't want to pay for an extra they don't need," Ms Just said.
"On the other hand, if everyone is covered, it closes the coverage gap we now have.
"If you get a premium bill that's over the top, pick up the phone or go to see your insurer - if you have evidence to support your case, they may compromise."
15.6.12
