North Queensland residents face insurance crisis after floods

As another wet season approaches, many residents are grappling with a new challenge: a lack of affordable insurance. Sure Insurance has canceled policies for some homeowners who experienced flooding during the 2025 event. The company cited changes to its underwriting guidelines, stating it would no longer offer coverage to properties with a history of flood claims or a risk of damage from a one-in-20-year flood.

Sure Insurance maintains it provides coverage for a significant portion of Ingham properties and regularly reviews its guidelines. A spokesperson stated, “To determine our ability to provide ongoing cover at a price that is fair.”

Finding alternatives has proven difficult. Ms. Yates encountered a quote of $28,000 for a year’s coverage, a sum she deems unattainable. Without insurance, homeowners face the full financial burden of rebuilding or repairing flood damage.

Ingham-based insurance broker Kieran Volpe says some providers are declining to cover high-risk properties, while others are dramatically increasing prices. “We are seeing, quite commonly, quotes coming in at $10,000, $15,000 or even $20,000 in those high-risk flood areas,” he said. “People just can’t afford it, so people are going without.”

Matthew Porter, another Ingham resident, experienced a 72 percent increase in his Allianz Insurance premium upon renewal this year. While he chose to retain his policy, he described the increase as “ridiculous.” Allianz attributes the rise to the increasing frequency and severity of weather events in Ingham and the associated costs of claims. “Premiums must reflect the genuine cost of insuring a property against these risks to ensure we can continue to pay claims when customers need us most,” a spokesperson stated.

The Insurance Council of Australia advises those facing non-renewal notices or significant premium hikes to seek explanations, shop around, or consult a broker. They acknowledge insurance remains available but emphasize that premiums in flood-prone areas will reflect the inherent risk. Reducing this risk through flood defenses, house raising, and resilient construction is key to lowering costs.

The Hinchinbrook Shire Council recently surveyed 305 residents and found that 77 percent are struggling to afford insurance premiums. Mayor Ramon Jayo expressed concern over the high costs and called for government intervention, stating, “There obviously has been market failure.”