A woman in South Australia's flood zone had her home insurance cancelled just weeks before the peak was due to hit, only to have it reinstated after the ABC contacted her insurance company.
June Hutcheon, who lives at Younghusband, in the Murraylands, received a letter from Budget Direct on December 7 saying her property fell outside the company's acceptable underwriting criteria.
"We're unable to renew your policy this year," the letter said.
Ms Hutcheon immediately called the company for clarification, and was told that despite her being a "reliable customer", her insurance would not be renewed from mid-January because she lived in a flood area.
"[I was] very surprised because I did let them know when I moved here that I lived in a flood area," she said.
"I was shocked and disgusted.
"When I rang them up, the girl says, 'You've been a really good customer, paying on time.' You know, everything was good.
"But unfortunately her words were, 'You're a high risk and we can't take that risk.'"
Ms Hutcheon said she was so upset she posted about her situation on social media. She then spoke to the ABC, which put questions about the decision to Budget Direct.
Within hours of that enquiry, the insurer said it had made a mistake.
"We can confirm that the customer is covered under their current policy until mid-January 2023 and is covered for the current flood event should they be impacted," the company said in a statement.
"Regrettably the non-renewal of this policy occurred in error, and we will be in contact with the customer today."
Insurance issues common
Local state MP Tim Whetstone said he had had a number of constituents approach him about insurance issues.
Some people are being knocked back from up to 14 insurance companies, while others are seeing their bills rise.
"People are seeing their insurance jacked up by many times, penalising people who want to live in the Riverland," Mr Whetstone said.
Emergency Services Minister Joe Szakacs said the state government had contacted the Insurance Council of Australia to urge companies to speak with those on ground.
"We may see representatives from the Insurance Council, or the Insurance Council themselves, embedded in our relief centres," he said.
Premiums increasing dramatically
Morgan shack owner Tracy, who did not want her last name published, had a call "out of the blue" from her broker on behalf of her insurance company, notifying her that her insurance premium was going to rise from about $1,800 to $24,000 a year.
"I was speechless. Obviously that was not an option," she said.
"We initially said, 'Well, obviously we're going to have to not have any insurance.'"
She said she heard others living in the area had experienced the same hike in insurance premiums.
The shack owner shopped around and eventually found a cheaper insurance policy, but it still cost more than what she previously paid.
She said her property had been underwater for more than a month.
