TOWNSVILLE, AAP – Up to a quarter of houses across north Queensland are uninsured because of storm-inspired premiums three times the price of the rest of Australia.
Floods and cyclones are among the emergency events which have flattened and damaged homes, and as a result, insurance companies have hiked the cost of annual cover.
“I want us to not to have to pay $4000 for house insurance every year in north Queensland, especially when the rest of Australia is paying $1500,” federal MP Bob Katter said, after taking the problem direct to the prime minister.
The Commonwealth’s terrorism reinsurance scheme should be expanded to encompass state-of-emergency events such as those in north Queensland, Mr Katter said.
The pool is in place to provide primary insurers with reinsurance for commercial property and associated business interruption losses arising from a declared terrorist incident.
Top Australian Brokers
- eToro - Social and copy trading platform - Read our review
- IC Markets - Experienced and highly regulated - Read our review
- Pepperstone - Trading education - Read our review
“I made it perfectly clear to the prime minister that I have strong feelings about the necessity for a reinsurance pool for northern Australia,” Mr Katter said.
Allianz Insurance have confirmed they support a reinsurance pool as an “effective and efficient way of reducing the cost of insurance” for cyclone-risk property owners.
Mr Katter said Prime Minister Scott Morrison offered a positive response during their meeting.
“A quarter of the houses in north Queensland are now not insured, but the chances of any houses being blown away is low as all the houses that could be blown away, have been blown away,” Mr Katter said.
