Hi All
I have been with suncorp insurance ever since the 2011 floods when all those people where messed around by their insurance companies.
They have always been reasonable however i have just got this years policy document and it has gone up from $2100 for a year to $4500 for a year.
after checking around most insurers are charging in that vicinity if you opt to have flood cover.
now flood is the most likely incident to happen, so basically most insurance companies want to only cover the infinitesimally unlikely events. in other words no coverage.
that being said i have never had to claim and even things that should have been covered by insurance really (aka flooding caused by a shower pan failing) was not claimed and rather put in as part of renovation costs to the bathroom to repair. carpet replaced out of my own pocket etc.
so given the lack of claims i am perplexed why they have massively increased insurance premiums. part of the reason given was the insured value being 500k, they will not allow that to be reduced.
When i was looking at extending my property the builder actually ended up saying that i would be better off rebuilding and quoted me $300k for the build. the property was recently valued at $350k.
now given those prices and valuation on the property there is no chance that an insurance company is going to ever pay out $500k for a house to be repaired that only worth 350k neither would they pay the $500k if they deemed the repair uneconomical. so it seems unfair for them to mandate that the insurance figure be so high
with the additional cost of living associated with mortgage interest rates it is really a low blow for the insurance companies to be price gauging like this.
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Insurance premiums are based not only on claims of the policy holder (the individual) but on claims across all policy holders (the collective).
While you individually may not have made a claim, the insurer has almost certainly been hit with huge claims by other policy holders.
As a result the premiums for each individual will increase, and in many cases like yours, those individuals who are at risk of flood will unfortunately be faced with large increases to cover the cost of the coverage needed for all policy holders who shoulder the same risk.
It's getting to the stage where you'd be better off putting your "premiums" into the bank and only using it when you have a claim event. That said, I've been happy with APIA at approx $205 a month for home and contents. We had a flood event in 2010 that we made a claim on but it was nowhere near as severe as the QLD floods.
I'm out of my mind, but feel free to leave a message...
at least you can get insurance , i live in tweed area and many of the NEW homes
that have been built over the last 5 or so years can no longer even get insured
after the floods we had last year.
After the floods they rezoned a massive area into a 1 in 100 zone and as such
premiums are way out of touch for most and will not have any chance of flood insurance.
dont say linux if i wanted it id install it
I know people who do this for home insurance, hedging they’ll never need to claim for a completely destructive event such as a fire, large tree through the roof, etc. Problem is very few of them put the ~$2k a year they save on home/contents insurance into a savings account, so if the worst did happen they would be completely financially ruined.
Last edited by peteramjet; 01-03-23 at 05:30 AM.
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