State on brink of flood cover insurance crisis

Queensland is on the verge of a flood insurance crisis as the state recovers from Cyclone Alfred – and calls are growing for federal government intervention as climate change threatens more frequent and destructive weather events.

The state’s strata managers have issued a stark warning: without urgent government involvement, insurance in flood-prone regions will soon become either completely unaffordable or unavailable.

Strata Community Association Queensland (SCAQ) general manager Laura Bos has called on all levels of government to take decisive action to fix Queensland’s insurance shortfalls before it’s too late.

“Queenslanders are being crushed under the weight of rising insurance premiums, and government inaction is making a bad situation worse,” said Bos.

“Strata insurance isn’t optional – it’s compulsory. Yet, every year, owners are forced to pay exorbitant costs just to meet their legal obligations. This is an economic and social disaster in the making. Insurance reform cannot wait.”

She added: “The recent North Queensland floods will not be covered by the reinsurance pool – a shocking oversight that will drive premiums even higher in an already unaffordable market.

“Our entire coastline, throughout Queensland and down to Northern New South Wales, is vulnerable to flooding. If governments don’t act now, we will reach a point where insurance becomes a luxury rather than a necessity.”

Stamp duty relief

SCAQ is also calling on the state government to remove stamp duty on strata insurance to provide immediate relief to property owners.

“We must stop the tax on strata insurance,” said Bos. “This is a tax on necessity. Strata owners aren’t choosing to take out insurance – they’re legally required to. The least the government can do is remove this unnecessary financial burden.”

And Bos called for greater investment in flood mitigation from state, federal and local governments.

“We must invest in mitigation and not just cleanup,” she said. “We know that 97% of disaster funding goes toward clean-up costs rather than prevention. That has to change.” 

“Every dollar spent on mitigation saves money, protects communities, and keeps insurance affordable. We need real investment in resilience measures – not just more band-aid fixes. The clock is ticking. We need urgent government action before more Queenslanders are priced out of protection.”