Taree Flood Lessons Renew Pressure on Insurance Affordability

The scale of the event remains significant. The floods generated more than 14,000 insurance claims and nearly $283 million in claim payments, with about 92% of claims now finalised. Yet the broader concern is that many households and small businesses are still facing the same exposure that drove the losses in the first place. The Mid North Coast and Hunter region reportedly accounts for around 10% of Australia’s flood-exposed properties, making it a practical test case for how governments, insurers and communities respond to repeated natural hazard risk.

For policyholders, the key issue is not only whether claims are paid, but whether future cover remains accessible and reasonably priced. The roundtable canvassed flood mitigation funding, the Disaster Ready Fund, buybacks, house raising, reinsurance options, rebuild costs, emergency services levies, premium transparency and better use of data. These are not abstract policy points; they influence how insurers price risk and how confident customers feel when deciding whether to renew, reduce cover or seek alternatives.

The tax component of premiums is also attracting renewed scrutiny. Roundtable participants were told that taxes can represent a substantial share of insurance costs, reinforcing concerns that high-risk communities may be hit twice: first by physical exposure to floods, then by affordability pressures that make adequate cover harder to maintain. This extends the wider debate over insurance-related taxes in New South Wales and whether they are undermining resilience by discouraging people from staying insured.

For consumers and small business owners, it may be useful to consider treating flood exposure as a renewal priority, not a once-a-year paperwork exercise. Check whether flood is included, how the insurer defines it, what exclusions apply, and whether sums insured reflect today’s rebuilding costs. If the premium has increased sharply, you may wish to discuss what is driving the change and whether mitigation work, excess adjustments or alternative policy structures could help.

This is also where professional assistance may be a resource to consider. A broker cannot remove flood risk, but they can help explain policy wording, approach insurers and document the steps taken to find appropriate cover. In flood-prone regions, that clarity can make a meaningful difference when comparing options and deciding how much protection is realistic.