Insurance for home loans customers rises in flood zones

Home loans customers in Queensland and Victoria are experiencing massive hikes in their insurance premiums as a result of the floods last year.

Some of those living in affected regions have been informed that the amount they have to pay has been pushed up by as much as 300 per cent, reports the Herald Sun.

In advice that may also be relevant to anyone taking out home loans, consumer groups said shopping around could enable people to find better rates.

Insurance firm GIO spokesperson Monica Vardabasso told the publication: "It is important that premiums reflect the risk of each property to ensure that customers are adequately covered."

A report into the floods published by IBISWorld in January revealed that the reconstruction costs likely to be incurred as a result of the Queensland disaster is expected to total $10 billion.

Earlier this year, the government announced that Aussies earning $50,000 a year or more may be required to pay a flood tax of between $25 and $1,250 to help cover the cost of the damage.

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