Insurance Premiums in North Queensland

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Insurance Premiums in North Queensland

North Queensland is famous for its beauty and Worldclass beaches. However, it also has a reputation for wild weather during the summer months. Unfortunately, these wild weather seasons have led to an increase of insurance premiums for residents in North Queensland.

An article was released by ABC news discussing how residents in North Queensland are divided on how best to respond to rising costs of building insurance due to cyclone season.

The Australian Competition and Consumer Commission (ACCC) has recently released the Northern Australia Insurance Inquiry report for 2020.

Below are the key findings for strata from the report:

The rising cost of Insurance in North Queensland meant that 20 per cent of schemes are unable to afford the insurance and therefore are going without.
In 2018-2019, insurance in North Queensland increased by 44.7 per cent.
Between 2007 and 2019 average insurance premiums rose by 178 per cent in North Queensland.
The size of the strata property has a significant impact of the average premiums.
Storms, floods, earthquakes, and cyclones all contribute to the higher insurance premiums in North Queensland.

The report made 38 recommendations, including:

Making it easier to search for, and compare, insurance products
Choosing the right amount of cover
Dealing with conflicts of interest
Addressing immediate affordability concerns
Improving consumers’ rights
Reducing risk and building better

Click here to read the recommendations in detail.

At SSKB we have created articles and videos to assist our clients if water damage occurs in their strata property. Click on the links below to find out more information.