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| These signs on Brisbane Terrace Goodna show what people still think of RACQ Insurance. |
RACQ Insurance is switching to compulsory flood cover tomorrow, meaning Queensland's two biggest home protection brands do not offer the option of opting-out of the insurance.
The decision creates a widening number of people who will have to switch brands if they do not want flood cover, which can be extremely expensive for at-risk properties.
A House of Representatives committee has cited anecdotes of home insurance rising 41 per cent in one flood-affected Queensland regional area while the National Insurance Brokers Association knew of one property whose premiums rose from $500 to $3500.
But insurers argue compulsory cover provides certainty.
Such moves follow a PR nightmare in last year's floods when some people complained of confusion about insurance covering downpours but not floods.
Suncorp, the state's biggest insurer, has compulsory cover for its Suncorp and APIA brands.
Suncorp's AAMI brand, which has covered flood since February, allows customers to opt-out if their property is deemed "medium to high risk".
More than 90 per cent of AAMI customers "are at no or low risk of flooding, and the inclusion of flood cover will have little or no effect on their premium", it said.
Allianz uses an opt-out flood insurance option to "provide choice".
IAG-owned NRMA, which switched to compulsory cover in January, recorded positive feed-back from customers in flood-prone areas "who now have certainty".
The decision creates a widening number of people who will have to switch brands if they do not want flood cover, which can be extremely expensive for at-risk properties.
A House of Representatives committee has cited anecdotes of home insurance rising 41 per cent in one flood-affected Queensland regional area while the National Insurance Brokers Association knew of one property whose premiums rose from $500 to $3500.
But insurers argue compulsory cover provides certainty.
Such moves follow a PR nightmare in last year's floods when some people complained of confusion about insurance covering downpours but not floods.
Suncorp, the state's biggest insurer, has compulsory cover for its Suncorp and APIA brands.
Suncorp's AAMI brand, which has covered flood since February, allows customers to opt-out if their property is deemed "medium to high risk".
More than 90 per cent of AAMI customers "are at no or low risk of flooding, and the inclusion of flood cover will have little or no effect on their premium", it said.
Allianz uses an opt-out flood insurance option to "provide choice".
IAG-owned NRMA, which switched to compulsory cover in January, recorded positive feed-back from customers in flood-prone areas "who now have certainty".
www.CourierMail.com.au
30.6.12
