Slugged with increased insurance
IF SKYROCKETING electricity prices weren't enough, now homeowners are finding the cost of insurance is going through the roof.
In one of the worst cases Tinana man Barry Wain was shocked to find his policy would increase to $14,000 if he chose to include flood cover in the insurance of his home.
The most surprising part was the fact his property had just survived two summers of disaster without sustaining any damage.
The local resident has been with his provider for six years and has claimed only the replacement of a shower screen in that time.
"I did get a letter and I pitched it, because I was disgusted at the time, I showed my wife and then tossed it," Mr Wain said.
"What actually upset me the most was that I got a courtesy call saying we are actually going to include flood now in your policy.
"And I said 'fair enough' and he said 'it will be $14,000'...who would take it for $14,000."
Mr Wain claims a senior representative of Allianz, his insurance provider, told him Tinana was zoned as the highest risk area in its grading system.
He said he eventually negotiated a policy for $1500 with high excess and without flood cover.
Another local questioning the value of insuring a home in the Fraser Coast is Alison Eiser.
She recently got a letter from her provider that left her bewildered.
"Well last year I went to RACQ to have my house insured and I had to argue with them then to have it down to $683, and that was with $1000 excess and no flood insurance," pensioner Alison Eiser said.
"This year I got the bill from them for $4400 and I phoned them up and said 'has there been an error?' And they said 'no that's what it is'."
Ms Eiser said RACQ representatives told her Maryborough was a flood zone and the whole town would be paying higher amounts for cover.
She said she contacted a broker and got a new policy with flood cover for $1100.
RACQ Insurance spokesman Mike Sopinski said the reason for the increases was because a new insurance product had been introduced.
He said the product came with flood cover as standard and confirmed it was introduced to replace the previous one.
"Premiums have increased due to the numerous weather-related incidents in the last few years and the consequent increase in reinsurance costs," Mr Sopinski said.
"For those properties in locations that are more likely to flood premiums will increase to reflect the risk it presents.
"Customers can spread the costs of insurance by paying by the month or adopting a higher excess to reduce their premium."
Allianz was contacted for comment but did not respond.