Flood insurance premiums slashed by up to 90% as levees relieve high cost of cover

SOME Queensland householders are getting the shock of their lives with news they now only have to pay half or in extreme cases 10% of what they used to for...

Surprised couple using a computer lying on their bed THINKSTOCK IMAGE

QUEENSLAND householders are receiving hefty price cuts on insurance premiums as the rebuilding program following the Summer of Disaster helps protect towns from floods.

Suncorp is the latest insurer to declare premium reductions of up to 90 per cent in Roma as a 5km earthen wall ringing the town nears completion.

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Suncorp Personal Insurance chief executive Mark Milliner believes Australia could learn a lesson from Queensland’s approach to risk management.

“Communities throughout Australia could be paying less for insurance if they were better protected from natural disasters,’’ he said.

Community Recovery and Resilience Minister David Crisafulli says more than 10 communities, including Maryborough and Mundubbera will soon also have flood levees.

Mr Crisafulli, who has been monitoring insurance premiums to ensure cost is reduced along with risk, said the levee program was just one example of the LNP Government’s practical approach to the multi-billion dollar rebuilding program following the 2010/11 floods and cyclone.

“This vindicates the position the Government took in ensuring Queensland communities are better protected when the next floods arrive,’’ Mr Crisafulli said.

Mr Milliner said Roma residents protected by the levee could now be paying around $1000 a year for flood insurance – a reduction on average of about 45 per cent.

But in extreme cases, a typical $400,000 homeowner in Roma could see insurance premiums reduced by up to 90 per cent – a decrease of up to $7000 a year.

Mr Milliner said the Maranoa Regional Council and Mayor Rob Loughnan had made a sensible decision to invest in flood mitigation.

“Suncorp promised that if disaster risk levels came down, so would the price of insurance, and we honour that commitment,’’ Mr Milliner said.

The completion of the levee means up to 90 per cent of Roma properties are considered to have no flood risk.

Further west, St George’s levee program completed this year has resulted in an average 15 per cent drop in premiums.

Mr Crisafulli said the Roma project was a great example of work he hoped to see replicated around the state in the next 12 months.

The Roma levee, expected to finish next month, runs from north of the Roma airport, crosses the Carnarvon Highway to traverse the eastern side of the town ending above Lovell St.

The levee will cost about $16 million with the bulk of funding coming from state programs such as Royalties for the Regions and Local Government Grants and Subsidies.

Flooding in Roma, in March, 2010.

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