Murweh, Balonne shire mayors slam flood insurance rises because insurers are unaware of levees

Insurance companies have been taken to task by two southwest mayors over a hike in premiums that in some cases have soared by $10,000 a year.

Queensland homeowners are being slapped with $10,000-a-year flood insurance hikes despite living in towns ringed by levee banks that have protected them for more than a decade.

Mayors of the Murweh and Balonne shires in the southwest of the state say residents have complained that bills have soared – in at least one case from $3500 to $13,500 a year – because insurers weren’t aware towns, including major centres of Charleville and St George, were protected by flood levees.

Murweh Shire Mayor Shaun Radnedge questioned the failure in mapping the regions and said residents were likely living without insurance.

The 1990 Charleville flood that resulted in the entire town needing to be evacuated after the Warrego Rivery broke its banks.

“We are asking the question of the insurance companies in Australia why our insurance premiums, especially in the Murweh Shire have risen sometimes up to 500 per cent,” he said.

“We have mitigation in place, we have a levee bank in Augathella and in Charleville, but we have seen these huge rises in these places.

“Council and government have put a lot of money into maintaining that mitigation and we’re asking where does the mapping come from that insurance companies are using to make the assessments on these insurance policies?”

Murweh Shire Mayor Shaun Radnedge.

Mr Radnedge said landlords were often skipping insurance because the high cost was diminishing rental returns.

“All our communities here in southwest Queensland have levee banks and we need the government to step in here and help us out – where is that flood mapping derived from and where do the insurance companies take that information,” he said.

Balonne Shire Mayor Samantha O’Toole said her community had been smashed with 100 per cent price rises and said soaring insurance premiums risked damaging housing availability.

She said towns in her shire – including St George, Thallon, Dirranbandi, Bollon and Mungindi – were protected by levees, but insurers were still raising premiums even though none had flooded.

Peter Goodwin in his flooded back yard next to the Balonne river in St George, southwestern Queensland, in February 2020. The Balonne river peaked at 12.2m, causing local flooding. Picture: AAP Image/Dan Peled

“Councils and government are spending a lot of money maintaining these levees, but the insurance premiums aren’t recognising that,” she said.

“We have a housing shortage and these premiums could make it worse, as to get a mortgage you need insurance cover … if fewer people can afford insurance then we are going to have fewer homes available, which will just exacerbate the housing shortage.”

The Local Government Association of Queensland has backed the call of councils for flood cover to be affordable and available.

Local Government Association of Queensland chief executive Alison Smith. Picture: Glenn Campbell

“There has been a dramatic rise in the cost of flood insurance premiums faced by Queensland homeowners in the wake of recent natural disasters,” LGAQ chief executive Alison Smith said.

“This surge in premiums has resulted in financial hardship for homeowners, as some have been offered unaffordable premiums, while others have been denied insurance coverage.

“The LGAQ calls on the state and federal governments to urgently implement measures to alleviate the financial burdens imposed by unaffordable flood insurance premiums.”