Following severe flooding triggered by a levee breach in early April, residents and business owners in the remote outback town of Thargomindah are confronting widespread property damage and rising concerns about the affordability of insurance cover for extreme weather events.
Local resident Melinda Byrne said in an interview with ABC that she was displaced for a week, sheltering at the town’s airport – the only high ground unaffected by floodwaters.
Upon returning, she discovered that floodwaters had reached significant levels inside her home, damaging flooring, furniture, and cabinetry.
“I think for me personally, I chose to believe that [my home] had kept it out so I didn’t have to think about the carnage that would be inside,” she told ABC, adding that she saw mud-covered interiors and soaked possessions when emergency services opened her door. The damage was compounded by the absence of flood cover.
NRMA Insurance’s latest Wild Weather Tracker reported that one in six Australians experienced weather-related damage over the 2024-25 summer, yet 40% of respondents felt unprepared. The season included damage from ex-Tropical Cyclone Alfred and over 95,000 insurance claims, according to Insurance Council of Australia (ICA) figures.
Byrne said she previously held flood insurance, but she had to forgo it after her insurer issued a renewal notice with an annual premium exceeding $30,000. Unable to absorb the increased cost, she opted to exclude flood protection.
Nearby, Paul and Nancy Sparks, owners of the Oasis Motel, estimate nearly $1 million in damages and lost income. They too are uninsured for flood-related events, citing a quoted premium of $25,000 – nearly double their existing policy.
Thargomindah’s Mayor, John Ferguson, said few residents or even council assets were covered, attributing it to high premiums. He has proposed government intervention, including the possibility of a public insurance option to support regional areas.
The ICA attributed rising premiums to increased natural disaster risks. It has called for $30 million in funding over a decade to develop a Flood Defence Fund aimed at enhancing resilience through infrastructure.
“In a cost-of-living crisis, it is important that all our efforts go into measures which will bring downward pressure on premiums, and this can only be achieved through a strong partnership between insurers and governments,” said ICA CEO Andrew Hall.
