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Federal Government Announces Insurance Scheme for North Queensland

Federal Government Announces Insurance Scheme for North Queensland

North Queensland has a reputation for cyclones and wild weather. This has led to many insurers refusing to cover properties or charging huge insurance premiums.

Homeowners will now finally get some relief following Prime Minister Scott Morrison’s announcement that a $10 billion guarantee will be implemented aimed at dropping unaffordable insurance bills and ensuring people can access a policy.

The Federal Government announced that home and business insurance premiums will become cheaper for people living in flood and cyclone-prone areas of northern Australia from July next year.

Does this apply to strata?

There will be a separate scheme specifically for Strata. This will include a $40 million fund set up to contribute towards cyclone-proofing buildings. This is aimed to further incentivise insurers to drop their high premiums.

The North Queensland Strata Title Resilience Pilot program will be used to approve practical works aimed at reducing damage caused by cyclones or cyclone-proofing the building (e.g. retaining walls).

Prime Minster Scott Morrison said, “the plan will provide access to more affordable insurance for Australians in cyclone-prone areas”.

“The people of North Queensland deserve to be able to have insurance like everywhere else in the country,” he said.

“More affordable insurance means peace-of-mind for hundreds of thousands of Australians across northern Australia, knowing that their economic livelihoods are protected,” he said.

Where can I find more details about the schemes?

Details of both schemes are not yet finalised. It is currently being investigated whether the Australian Competition and Consumer Commission can be used to monitor prices to ensure savings are passed on.

Federal Treasurer Josh Frydenberg said a taskforce led by the treasury would work closely with the insurance industry and deliver the final design of the reinsurance pool.

To stay up to date with the latest updates on the insurance scheme for North Queensland follow SSKB on LinkedInFacebook and Twitter 

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