When Austin Gregor opened his insurance renewal statement this month, he was anticipating a steep climb to his premiums, but he never guessed it would jump $20,000.
"It was quite a shock really," he said.
His home in North Wagga Wagga in southern NSW is in a flood-risk area, and was placed under several emergency warnings and one evacuation order in the past six months due to flooding of the Murrumbidgee River.
He said he knew he would be paying more in light of the recent events, but called the increase from $1,800 to $22,000 "prohibitive".
The same increases are being seen across the country by other flood-affected home owners.
Valerie Myers's Echuca home was impacted during major floods in the town that sits on the NSW and Victorian border.
While fighting to protect her home from the floodwaters, her Westpac renewal arrived in the post. It had more than tripled.
"We were devastated, absolutely devastated," she said.
"To get that, it was just another kick in the guts."
Her home and contents package jumped from about $2,000 to more than $7,000.
Other residents in flood-impacted areas including Barham and Moama in south-west NSW said their insurance had also jumped by similar amounts.
No opt-out
Mr Gregor and Ms Myers said they tried to opt out of the flood cover, which accounted for most of the increase, but Westpac confirmed it was required in all home policies.
"They've got you over a barrel, actually," Ms Myers said.
Mr Gregor said when he tried to shop around, other companies either refused to provide insurance or quoted as much as $38,000 for the same cover.
Like many home owners, insurance is a condition of Mr Gregor's mortgage.
"I guess the situation now though is we have the choice to either pay what I would describe as prohibitive insurance costs, or potentially not be able to insure our home at all," Mr Gregor said.
Westpac said its insurance was issued by Allianz, which considered factors such as extreme weather events and updated flood risk modelling in setting prices.
Call for change
Ms Myers said insurance companies needed to provide more transparency and flexibility.
"Something needs to be done. The government may need to step in. I don't think it's fair," she said.
Mr Gregor said he was concerned about how the price hikes would hit other, more seriously impacted areas such as Forbes and Eugowra in central-west NSW.
"How are they ever going to be able to afford to insure their homes if this is what happens every time there's a flood?" he said.
Insurance Council of Australia chief executive Andrew Hall said government intervention would only "mask risk", and said the real focus needed to be on rebuilding in safer areas.
"In the Riverina and Central West, we've seen the flood issue play out quite dramatically and tragically," he said.
"At the end of the day until we can get down some of these risk factors, insurance premiums will be at an upwards trajectory, particularly in those areas that are most exposed."
