The Insurance Council of Australia (ICA) has upgraded devastating floods across NSW’s Mid North Coast and Hunter regions to an Insurance Catastrophe, triggering priority support for thousands of affected property owners.
The decision elevates the event from a Significant Event classification following feedback about the local severity of flooding that began on May 17 and ongoing recovery challenges faced by communities.
“The decision to upgrade this event reflects the breadth and severity of damage caused to impacted communities,” said Andrew Hall, CEO of the Insurance Council of Australia. “It will also serve to activate additional services and support for affected homeowners and businesses and reassure them that their insurer is there to help.”
The catastrophe declaration prioritises claims processing, with insurers mobilising disaster response specialists and establishing dedicated support services. An industry taskforce will identify and address issues arising from the floods, while the ICA’s disaster hotline (1800 734 621) aids policyholders with general enquiries about the claims process.
A news release highlighted that insurers have received 4,900 claims from the event, with Mid-Coast recording the highest number at 1,233 claims, followed by Central Coast with 677 and Lake Macquarie with 630. Home insurance claims dominate, accounting for 3,954 of the total claims, with motor vehicle claims at 771 and commercial claims at 212.
The flooding has highlighted ongoing vulnerabilities in river catchments that have experienced repeated flooding over recent years, prompting calls for more sustainable solutions.
Hall acknowledged the long road to recovery ahead. “Seeing the damage here in Taree today it’s clear the road to recovery will be a long one,” he said. “Our number-one priority is helping households and businesses in the clean-up and recovery so they can get back on their feet as quickly and safely as possible.”
Insurers have established a dedicated Insurance Hub at Taree Leagues Sports Club, operating through June 13, between 10am and 5pm, with no bookings required. Representatives are also present at Recovery Centres across the region.
While it’s too early to determine the total damage bill, the ICA noted that early 2022 floods remain Australia’s costliest insured event with $6.4 billion in losses across more than 245,000 claims. However, officials don’t expect this event to reach those levels.
The council said that most standard home and contents policies cover storm damage, though some customers may have opted out of flood cover. Property owners are advised to contact their insurers to understand their coverage and begin the claims process as soon as safely possible.
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