Home claims surge as Queensland and NSW flood victims return

People in flood-affected areas could be waiting years for their homes to be rebuilt, due to record construction, labour shortages and supply chain issues.

People in flood-affected areas could be waiting years for their homes to be rebuilt, with the natural disaster colliding with record numbers of homes being built in Australia, labour shortages and supply chain issues.

Almost 70,000 claims have been made so far across NSW and Queensland, with that number expected to increase as residents return to their homes.

The Insurance Council of Australia has estimated the total cost of claims is now more than $1bn, and urged for more to be done to lessen the impact of extreme weather on properties in future.

The Morrison government faced severe criticism last week for failing to spend any of the $800m in interest earnt through the Emergency Response Fund.

Housing Minister Michael Sukkar said the government was working with insurers to ensure the rebuild took place as quickly as possible.

“I have been directly engaging with insurers to ensure claims are processed as easily and quickly as possible, and the government will continue to work with insurers and monitor the situation closely,” he told The Australian.

“The government will do everything we have to in order to alleviate any stress and pressures, so that people can get back in their homes sooner and start rebuilding their lives.”

But Housing Industry Association managing director Graham Wolfe warned there were significant challenges already facing the housing industry.

“We already have across Australia a record number of houses under construction at the moment and we already have strong demand for trades,” he said.

Wlison Bruggy‘s destroyed house which was pushed off its foundation by floodwater near Wyrallah. Picture: Getty Images

“So across an industry that is extremely busy we’re going to see close to 100,000 claims for homes from the floods.”

While a new home typically takes somewhere between eight to 12 months to build, that time frame is expected to balloon out.

Master Builders Australia chief executive Denita Wawn expected people to be waiting at least two years for homes to be renovated or totally rebuilt.

She said the industry was confronted with a “perfect storm” because of labour shortages, supply chain issues, and federal and state programs encouraging people to build or renovate homes.

Ms Wawn said 350,000 people needed to enter the industry over the next four years in order to fill demand.

“The industry does need to consider what greater flexibility is needed … without compromising quality and safety,” she said.

Mr Wolfe agreed more labour needed to be found, and fast.

“For someone who wants to become a roofer today it will be three to four years of study and then further years of getting experience and licensing,” he said.

“We don’t have that much time.”

Opposition emergency management spokesman Murray Watt said there needed to be a national plan for Australians displaced by national disasters.

“We know the building industry is already under immense pressure and the supply and labour shortages will be exacerbated given this recent disaster,” he said.

“Now more than ever the Morrison government needs a plan to ensure the construction market can handle the demand.”