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When Wagga’s Peter Castles opened up his usual insurance premium renewal, he never expected to see a 315 per cent increase or expect to pay more than $6000 to keep his home protected from floods.
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Mr Castles is one of many Central Wagga residents hit hard by a rise in home and contents insurance premiums this year, with one cash-strapped resident forgoing his flood coverage all together.
Resident of more than 40 years, Gillian Sheather, said she nearly “died of shock” when she opened up her renewal, which had increased from an astonishing $1300 to $5800.
“You stick with the flood component each year because you just never know, I simply don’t feel comfortable without it,” Mrs Sheather said.
“I can’t understand how it can dip from one year to the next, it’s just not affordable.
“If the house flooded and I didn’t have it, I’d only have myself to blame but it’s hard to figure it all out on your own.”
Mrs Sheather said it was unfair for Central Wagga residents were subject to such a hike, given in her 40 years, they had never flooded.
With the exception of one blocked drain, all five long-time residents The Daily Advertiser spoke to said they had never had any issues with water or flooding.
Both Mr Castles and Mrs Sheather said they were insured with the National Roads and Motorists' Association (NRMA) and would now be forced to shop around.
Mr Castles said he was particularly surprised given his home’s value had only increased by 4.75 per cent and he believed he was protected for a one-in-100-year flood.
“When I contacted NRMA, they said they were at the point where they couldn’t keep insurance pegged down without some sort of action with the levee bank,” he said.
Mr Castles said now, more than ever, he was pushing for the completion of the levee bank to provide some relief.
Single mother Faye Everett said her premium went up to about $5500 from about $1000 before the 2012 North Wagga floods.
“It’s hard enough to get by with electricity, gas and shopping without this, you just can’t afford it,” Ms Everett said.
“I suppose if you stopped paying the $5000 for five years or so you’d have enough to cover any flood damage.”
Karen Fisher said she had noticed a slight increase on her APIA insurance this year, from about $1800 to $2300.
“When it gets up to that $2000 I would always want to be getting some comparisons,” Ms Fisher said.
“It’s concerning for so many pensioners who would simply stay with the same company and aren’t able to deal with the hassle.”