Storm- proof premium cut In s urer to reward cyclone retrofits

THE strengthening of roofs and roller doors and protection for doors and windows could soon be features in North Queensland homes designed to reduce cyclone risk and lower insurance premiums.

Insurer Suncorp is proposing the measures as part of its Protecting the North package.

Suncorp spokeswoman Melissa Cronin, in the city yesterday, said the insurer from next year planned to introduce a system that would recognise improvements to make homes more cyclone resilient.

“There will be premium reductions to reward this work,” Ms Cronin said.

“Suncorp Bank will also be giving North Queensland homeowners the opportunity to apply for a reduced fixedrate personal loan to support cyclone mitigation home improvements.”

Ms Cronin said Suncorp had had discussions with governments at all levels to argue there was enormous benefit in government investing in a program that helped homeowners pay for retrofit work.

“Our arguments are backed up by James Cook University research and economic analysis, which found low- cost retrofits such as roof strengthening and window and door protections will pay for themselves over time,” she said.

“Prevention through a retrofit program is the most effective and sustainable way of dealing with high cyclone risk in North Queensland and in turn reducing premiums.”

Ms Cronin said since launching a direct strata product in April, Suncorp had sold more than 183 policies in North Queensland with premium reductions of about 20 per cent.

“We’ve also launched Essentials Insurance for people on low incomes where premiums start from as little as $ 4 per week,’’ she said. “It will be available via a network of providers.”

Suncorp has partnered with JCU and Urbis to identify opportunities to make homes in the North more cyclone resilient through retrofit upgrades.

“Through our research, we found more than 16,000 homes in the Townsville region alone may not be built in line with current wind- load codes and risk being torn apart by cyclones this and every cyclone season,” Ms Cronin said.

“Our research shows that every dollar spent on low- cost retrofits will provide a return of up to $ 13.’’

Ms Cronin said insurance losses from cyclones cost Australia more than $ 600 million a year and without better protection for homes, the risk and cost could rise.