Soaring insurance could be death knell for historic venue for events and tearooms

Glen Derwent’s history dates back to 1818 but the prized heritage venue could close in November because of insurance costs. Here’s how much the owners once paid vs the most recent quote.

Glen Derwent co owner Liz Virtue at New Norfolk. Picture Chris Kidd

An historic Tasmanian tourism and hospitality venue says it will have to close because of the prohibitive and soaring insurance costs.

Glen Derwent at New Norfolk, which offers accommodation, camping grounds, tea rooms and caters for events, has already cancelled a wedding booked for November because it is not hopeful of securing insurance by then.

Liz Virtue says that in 2016 when she and her husband bought the property, which has a building dating back to 1818, the annual insurance bill was just under $7,000 and by 2023 they were paying $15,000.

“We’ve received one quote for property insurance costing almost $32,000 for a year but it excludes two of the current uses - accommodation and campgrounds - and doesn’t include public liability. So it’s only a potential part solution at this stage,” she said.

Liz Virtue of Glen Derwent Estate concerned about lost business for the area after what has already been a terrible Winter for tourism. Picture: Nikki Davis-Jones

“I don’t know why the base premiums are increasing so dramatically - likely due to increased claims from more frequent extreme weather events - but I do know the government charges on top are increasing because they are percentage based.

“So when the premium increases, they do too - more than a third of the cost is government levies and taxes.

“We’ve had countless insurers decline to quote based on insured value, heritage listing and/or our postcode.”

Ms Virtue said the business would have to close on November 18 when its current policy ends.

“We had to cancel a wedding for November 23 due to our insurance ending on November 18.

“I asked if the current insurer would extend insurance by five days to cover to November 23 and they said ‘no’.

“As awful as it was to cancel, I felt it was kinder to cancel almost three months out than to have to cancel at the last minute if we couldn’t get a new insurer.”

The Insurance Council of Australia said: “Wherever you live or do business in Australia - whether you’re exposed to extreme weather or not - premiums are rising because of the escalating cost of extreme weather, the growing value of our assets, inflation, and insurers’ increasing cost of doing business.”

A council spokesperson encouraged people to “frequently shop around and compare policies to find the best deal”.

“Investment in mitigation infrastructure, changes to land use planning and building standards, and the removal of unfair taxes and levies are all needed to stabilise insurance premium costs,” she said.

Ms Virtue said she was aware of another business that had closed and others at risk “due to unaffordable insurance or not getting renewal”.

She fears that without an income from the property the Virtues would have to sell.

“It would not be affordable for us, in our personal circumstances, to stay here long term without the property earning its keep.

“Everything the property has earned has gone into maintenance and restoration.

“We can’t look after this important heritage property without an income from it.”