As devastating floods swept through the NSW Mid North Coast in May, families and farmers have been left reeling — not only from the physical destruction but from the harsh reality of an increasingly unaffordable insurance market.
For many, the choice between financial survival and adequate cover has become impossible.
When the Water Rose and the Cover Disappeared
In the flood-stricken town of Wingham, residents Glen Schmidt and Cindy West did everything right.
They filled more than 150 sandbags, installed pumps, and prepared their property as best they could. But when floodwaters surged to 1.6 metres inside their home, their insurance policy, once affordable at $2,000 was no longer in place.
“The insurance prices just skyrocketed to $28,000. We couldn’t afford it,” Mr Schmidt said.
“Across the road, they were quoted $75,000 none of us down here are insured.”
Their story reflects a growing pattern across flood-prone regions of NSW, where rising premiums have priced many households out of protection entirely.
Farmers Face Total Devastation
Further north in Croki, dairy farmers Craig and Debbie Emerton described the latest flood as “total devastation.”
After decades working their family property, the couple lost around 50 cattle, including most of their calves, and were unable to milk for days.
“That was our superannuation and it’s gone,” Mr Emerton said.
Like many of their neighbours, the Emertons are uninsured. With premiums now out of reach, the couple are reluctantly considering moving to higher ground.
“We don’t want to, but we can’t go through this again,” they said.
Why Premiums Are Rising
According to Insurance Council of Australia CEO Andrew Hall, the sharp rise in premiums is the result of record weather events, a surge in claims, and building inflation up nearly 40 per cent in just three years.
About 6,000 insurance claims have already been lodged from the latest floods increasing by roughly 1,000 per day, highlighting the scale of Australia’s exposure to natural disasters.
Hall and the ICA have renewed calls for a $30 billion Flood Defence Fund to support levees, house-raising, waterproofing, and buyback schemes.
“There are around 220,000 homes in high-risk flood areas that need better protection,” Hall said.
A Growing Protection Gap
As insurance becomes less accessible, thousands of Australians are now living in high-risk zones without coverage. This “protection gap” leaves families vulnerable to losing everything homes, possessions, and financial security after a single disaster.
One-off government payments, such as the recent $1,000 flood-relief grant, provide temporary relief but can’t replace a lifetime of belongings or a home’s value.
“A thousand dollars is better than nothing, but when you have nothing, it doesn’t go very far,” Ms West said.
How myVal Helps Households Take Back Control
While myVal can’t stop floods or lower national premiums, it empowers households to better prepare, protect, and recover — even in an unpredictable climate.
With the myVal app, residents can:
- Run a Policy Health Check to identify coverage gaps, category limits, and exclusions for flood, storm, or water damage.
- Keep digital proof of ownership for all valuables — from furniture to farm equipment — stored safely in the cloud.
- Generate insurer-ready claim reports instantly, helping speed up claims when disaster strikes.
- Use Maintenance & Preparedness reminders to stay proactive — from checking roof drainage and cleaning gutters to elevating storage and safeguarding power equipment before heavy rain.
By building a clear, up-to-date record of what you own and understanding exactly what your policy covers, you can reduce stress, improve recovery time, and make every claim smoother and faster.
Looking Ahead
Australia’s flood crisis isn’t going away but preparation can soften the blow.
Government resilience funding, smarter insurance systems, and household-level readiness all have a role to play.
Until change arrives, knowledge and preparation are your best defence.
Before the next flood season, take steps to document, maintain, and protect your most valuable assets.
Download myVal today — and turn preparation into power.
References
Australian Broadcasting Corporation (ABC News). (2025, May 29). Flood-hit NSW residents say insurance unaffordable as premiums skyrocket. ABC Mid North Coast. Retrieved from https://www.abc.net.au/news/2025-05-29/flood-hit-nsw-residents-say-insurance-unaffordable/
Insurance Council of Australia (ICA). (2025). Insurance Council calls for flood defence fund as premiums rise amid record events. Media Release. Retrieved from https://www.insurancecouncil.com.au
Australian Government, Bureau of Meteorology. (2025). Seasonal climate outlook: Rainfall and La Niña watch. Retrieved from https://www.bom.gov.au/climate/outlooks
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