Flood maps to ‘hit insurance’

JOHN VAN KLAVEREN
PLANNING authorities allowing homes to be built in flood-prone areas are contributing to spiralling insurance premiums, according to a Geelong broker.
Geelong Insurance Brokers’ Don Shields said councils including City of Greater Geelong were flood mapping out of fear of litigation.
“Councils have scared people by telling them they’re going to get wet,” Mr Shields said.
“Councils allowed people to build in flood plains without proper flood mitigation in place, now they’re worried about being sued.”
The City awaiting Planning Minister Matthew Guy to approve extensive flood mapping completed last year.
The Independent reported in August that properties with new flood overlays faced increased building costs and reduced values.
Mr Shields said private operators were now stepping in to prepare flood maps for areas councils had overlooked.
“Companies are doing their own flood mapping because they need to be able to calculate the risk.”
Mr Shields warned that some policyholders faced large increases in their premiums.
Flood insurance would no longer be available for some properties in postcodes such as Barwon Heads.
“Premium rises are occurring primarily because of the number of disasters like earthquakes, tsunamis and cold snaps around the world,” Mr Shields said.
“Insurance companies make up the difference between premiums and payouts by investment but the markets are also down.