Floods set to lead to double-digit rise in home insurance costs

Homeowners across the state of Queensland could be forced to raid their current accounts as they struggle to cope with marked increases to their home insurance premiums.

Coming as thousands are still trying to get back to normal after the devastating floods which hit the state earlier in the year, a new report predicts that the cost of a typical home insurance policy is likely to go up by at least ten per cent over the coming weeks.

Furthermore, consumers are also likely to be hit by a marked increase in other areas of cover, meaning many will be forced to compare car insurance policies and assess other areas of their personal finances, in the days ahead, the report from the Royal Bank of Scotland warns.

According to the Daily Telegraph, Queensland's largest insurer, Suncorp, is keen to cap the cost of claims related to the floods at between $70 and $90 million.

At the same time, the chief executive of the Bank of Queensland has conceded that the recent floods could cost it as much as $35 million in lost profits.

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