An increasing number of Australian postcodes are now considered un-insurable, as regional communities across the country face a massive rise in insurance premiums. In the current cost-of-living crisis, many homeowners are making the tough decision to leave their properties uncovered. Experts are warning that as many as one in ten Australian homes may be uninsured within the next decade.
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00:00Michael Davies loves living in Upper Brookfield, in the hills west of Brisbane, but two years
00:08ago he watched on nervously as heavy rain caused rampant flooding across his suburb.
00:16His house was safe, perched on a ridge well above the floodwater, but despite not making
00:21a claim, his insurance premium tripled to almost $9,000.
00:27It's pretty scary and on the verge of chaos, isn't it?
00:30A carpet cleaner by trade, many of his clients face similar problems.
00:35They're sort of forced to make decisions that probably goes against what they really want,
00:37you know, which leads them to be under-insured and then that creates all sorts of stress
00:41in a family, doesn't it?
00:43It's something being felt across the country.
00:46There are 13 flood-affected communities in the eastern states already considered to be
00:51uninsurable, while a further 15 locations are considered a high risk of becoming uninsurable.
00:57We're seeing flood cover where insurance premiums of $10,000, $20,000, even $30,000.
01:03But it's not just floods.
01:05When the Grampians bushfire threatened Hall's Gap last month, Asip Mameshi evacuated, closing
01:10the doors of his hotel, knowing if it burnt down, he wasn't covered by his $55,000 policy.
01:16I've got no insurance for fire, no flood insurance, so it's really, really basic cover for us.
01:22It's only a small, we're only a little country pub.
01:25Community lawyer Dennis Nelthorpe says in a cost-of-living crisis, many regional residents
01:29simply can't afford insurance.
01:32There are deep-seated problems within the Australian insurance market and the industry
01:39is opposed to government intervention.
01:43Australia's household insurance system is based around individuals negotiating cover
01:48with insurance companies.
01:50Experts say this leads to a power imbalance and high premiums.
01:54They've called on the government to intervene.
01:56There really needs to be essentially a national plan of what we're going to do about these
02:01properties because this is not a small number.
02:03This is one in ten properties.
02:05Michael Davies faces some tough decisions this year.
02:08So we'll probably drop the flood cover in our situation.
02:12Unfortunately I think that's what the problem is, people are going to be forced to sort
02:16of deal with the consequences.
02:17Rolling the dice whenever it rains.