Weather woes: the real cost of Australia's extreme weather

An illustrated image showing the aftermath of a flood in an Australian neighbourhood, with the increased cost to rebuild symbolised by a red upward trajectory arrow and a dollar symbol.

The latest data from the Insurance Council of Australia (ICA) sheds light on just how much extreme weather has been hitting our wallets. 

Since the start of 2022, Aussies have filed home insurance claims totaling a whopping $9.6 billion due to floods and storms. That's from over 450,000 claims, showing both the scale and punch of these events.

To give you a clearer picture, the ICA put together an infographic that breaks down the major storms since 2022, including claims, average costs and total damages. 

It shows what we’ve been up against and is a handy guide to understanding the financial impact of these weather events.

An infographic that breaks down the major storms since 2022, including number of claims, average claim amounts and total damages.
Source: Insurance Council of Australia

A pricey summer for insurance

This past summer, the bill for weather-induced chaos hit $1.2 billion. The bulk of that, about $968 million, comes from the storms around Christmas and New Year that swept through Queensland, New South Wales and Victoria. 

With nearly 90,000 claims filed, and 18,000 of those just in the last month, it's clear the effects are still being felt.

Then there was ex-Tropical Cyclone Jasper. With damages reaching $278 million from close to 10,000 claims, it's a stark reminder of the storms' severity. The average claim? $28,000. Ouch.

Valentine's Day's unwelcome surprise

Victoria copped it again last month with the Valentine's Day thunderstorms, leading to almost 20,000 insurance claims and damages estimated at $104 million. Insurers have already handed out $4 million to help those affected. 

In light of the widespread damage, the ICA has labelled the Valentine's Day storms a "Significant Event." That means more support for those picking up the pieces after storm damage and power outages.

Insurance check: what's next for you?

Seeing these numbers might have you thinking about your own situation. If extreme weather were to hit tomorrow, are you prepared

Here’s some food for thought:

  • Check your insurance. Now's a good time to make sure your insurance covers what you need it to. Natural disasters? Check.
  • Know how to claim. Get familiar with the claims process. Knowing what you need can make things smoother if you ever have to file a claim.
  • Get your home ready. There are simple things you can do to protect your place, like cleaning out those gutters and securing any outdoor items.
  • Put together an emergency kit. Have an emergency kit with essentials like water, batteries and first aid. It’s a must for sudden severe weather.
  • Keep your ear to the ground. Tune into reliable sources like police scanners, the Bureau of Meteorology, and local disaster services for the latest weather updates and safety advisories.
  • Update your emergency plan. Make sure your emergency plan is current. Know where to go and what to do if you need to act fast.

These numbers from the ICA are a wake-up call on the impact of climate change on our communities and the importance of being prepared.

To protect your home from future disasters, consider one of the following top-notch home and contents insurance policies below.

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Last updated 15 October 2024Important disclosures
Important information on terms, conditions and sub-limits.
  • Home Cover - Buildings & Contents

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 30% Of Buildings Sum Insured, Applied Automatically For Eligible Policies
    New for old
    replacement
    Replacement icon
    Yes
    Details
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
      Optional Extra
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 25% Of Building Sum Insured
    New for old
    replacement
    Replacement icon
    Yes
    Details
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    No
    New for old
    replacement
    Replacement icon
    Yes
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    No
    Underinsurance protection
    Underinsurance protection icon
    No
    New for old
    replacement
    Replacement icon
    Yes
    Details
  • Home & Contents Insurance

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 30% Of Building Sum Insured
    New for old
    replacement
    Replacement icon
    Yes
    Details

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