Cyclone Alfred Exposes Gilmore’s Insurance Crisis as Costs Soar
As Cyclone Alfred’s aftermath continues to reveal the vulnerability of our coastal communities, independent candidate for Gilmore, Kate Dezarnaulds, urges a focus on exploring innovative solutions to Australia’s growing home insurance crisis. Families in Shoalhaven, Eurobodalla, and Kiama are facing a heartbreaking reality: climate-driven cost-of-living pressures are pushing home insurance out of reach for many.
“Watching the devastation in northern NSW and QLD, we stand in solidarity with affected communities. But I worry—what happens when the next disaster strikes here in Gilmore?” Kate said. “With grocery, fuel, and power bills already squeezing family budgets, home insurance should not be a luxury.”
In the past five years, Gilmore has experienced more declared natural disasters than anywhere else in NSW—14 in the Shoalhaven alone. From the Black Summer bushfires, which scorched up to 70% of Shoalhaven, to the relentless flooding, landslides, and storms that followed, communities are still reeling from the effects. In 2022, Kangaroo Valley recorded 38 landslides in a single year (SMH).
Gilmore at Risk: The Underinsurance Crisis
A Climate Council analysis reveals that nearly 40,000 properties in Gilmore (50%) face medium to high risk by 2030 under a medium-emissions scenario. Some towns, including Brogers Creek, Hyams Beach, Termeil, Rosedale, Tapitallee, and Mogo, have risk levels as high as 94–100% (Climate Council).
Kate is hearing firsthand how this crisis is hitting small businesses, farmers, long-term residents, and those looking to settle here:
"Small businesses in Kangaroo Valley, battered by floods and landslides, still struggle to secure insurance. In Lake Conjola, homes lost to fires five years ago remain unreconstructed because the cost of rebuilding far exceeds insurance payouts. As a small business owner in Berry, I face the risk of operating without flood insurance—a challenge many in our community are forced to navigate. The reality is, we won’t truly know how many families are uninsured or underinsured until the next disaster hits,” Kate said. “People love the beauty of the South Coast, but many would be shocked to learn they can’t meet their mortgage obligations simply because insurance is either unavailable or unaffordable.”
Recent data highlights the growing crisis:
- Insurance premiums have skyrocketed—up 14% in a single year (The Australia Institute), increasing by up to 30% for some homeowners. (SMH, Insurance Business).
- One in eight Australian households now spends more than four weeks' income on insurance premiums (The Australia Institute)
- In NSW, homes are underinsured by an average of 24%, and even those with coverage may find they do not have enough to fully rebuild, with residential properties underinsured by 18%. (realestate.com.au).
- Some insurers are quoting over $10,000 per year for homes in high-risk flood zones (The Australian).
“Rising premiums and cost-of-living pressures are making insurance unaffordable for many families, forcing them to cut or cancel their coverage altogether, leaving them financially exposed if disaster strikes,” said Ms. Dezarnaulds. “A middle-income family could lose up to 75% of their wealth if their home were destroyed without proper coverage.”
Natural disasters aren’t just causing devastation—they’re making daily life more expensive. Council rates are rising as local governments struggle to repair damaged roads, bridges, and public assets, forcing residents to shoulder the cost through rate hikes. Property costs are increasing, as rebuilding expenses and stricter building codes make housing less affordable in disaster-prone areas. Meanwhile, power, transport, and food prices continue to be impacted, as disasters disrupt supply chains, damage infrastructure, and drive up supermarket and energy bills.
Innovations in Insurance: What’s Working?
The Insurance Council of Australia has warned since 2008 that climate risks are making home insurance unaffordable. Kate points out, “While some propose divestment from the insurance industry, that misses the point. We need insurers to remain profitable to pay claims promptly when disaster strikes. Undermining profitability will only make insurance more expensive and harder to access. We need a system that keeps coverage affordable and protects all communities.”
Some government initiatives have made strides in addressing the insurance crisis, but they fall short for regions like Gilmore.
- The Cyclone Reinsurance Pool, a government-backed scheme, helps insurers lower premiums for cyclone and cyclone-related flood risks, mainly in Northern Australia. However, it does not cover general floods or other disasters like bushfires, leaving areas like Gilmore unprotected.
- Home Warranty Insurance protects homeowners when builders go bankrupt, but it doesn’t address rising premiums or gaps in coverage for disaster-prone areas.
- The Hazard Insurance Partnership, though a step in the right direction, is still in its early stages, with real-world benefits for communities like Gilmore yet to be seen.
- New Zealand’s No-Fault National Insurance offers universal injury coverage for residents and visitors, which could benefit high-risk areas in Australia, but no similar system exists here.
“Families and businesses in Gilmore are facing skyrocketing insurance costs, and these solutions aren’t making a dent. We need to be having tough conversations about how to make our homes and businesses insurable for the future. Insurance can’t be a luxury for the privileged. We need bold action to keep coverage affordable and ensure communities aren’t priced out of protecting their most valuable assets.”
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About Kate Dezarnaulds and Her Campaign for Gilmore
Kate Dezarnaulds is an independent candidate for Gilmore, committed to delivering practical, community-driven solutions for the South Coast. A local business leader and advocate for regional investment, Kate is focused on fixing real issues, including improving infrastructure, strengthening local economies, and ensuring government funding reaches the people who need it. Kate’s campaign is built on listening to the community, advocating for transparency, and working collaboratively to achieve meaningful change. She believes that Gilmore deserves a strong, independent voice in Canberra—one that puts people before politics.
For more information, visit kate4gilmore.com.au or follow Kate on socials: @kate4gilmore
Authorised by Kate Dezarnaulds, Independent for South Coast Pty Ltd, 3/68 Albert St, Berry NSW 2535