The Insurance Council of Australia has declared the situation a catastrophe, setting up an insurance hub in Taree to assist those affected. The number of claims has already surpassed 6,000, highlighting the widespread impact. Unfortunately, many find themselves without adequate cover. Farm insurance packages generally exclude flood protection, leaving essential assets like properties at risk, despite coverage for equipment such as tractors and quad bikes.
Matthew Fawcett, a broker from Insure More, notes that regional businesses, particularly those in Taree, feel the weight of sky-high flood insurance costs. With the area worst affected by the disaster, there is mounting fear that Taree might turn into a "ghost town" if businesses retract. Fawcett forewarns that critical commercial streets might be left barren, as shopkeepers choose between prohibitive rent or persistent flooding if they return, underscoring the urgent need for flood mitigation measures like a levee on Victoria Street.
Without these protective measures, the insurers' willingness to provide cover remains low. Historical urban structures in Taree, built around waterways, heighten the risk, resulting in insurers retracting or inflating costs, reflecting the intensifying risk climate. The sentiment is shared in Maitland, where Arma Insurance Brokers' Amanda Morris recounts that many are uninsured due to the unfeasibility of flood premiums, which can soar as high as $30,000. While Maitland has avoided the worst, largely due to an intact levee, the financial burden remains severe for those gambling between economic strain and potential flood loss.
For many residents, especially the elderly in more prestigious areas, the cost of flood insurance is simply untenable, leaving them incredibly vulnerable. Morris highlights that even with unprecedented flooding levels, insurance claims remain scant, as the lack of coverage leaves residents and businesses to bear the brunt of financial damages.
The flooding in New South Wales underscores a critical gap in insurance offerings and uptake, driven by financial inaccessibility. It calls for a concerted effort towards policy reform, infrastructure improvement, and pricing revision to better shield vulnerable communities from such devastating events in the future.
