Suncorp has begun writing new home and contents cover in Roma, 16 months after putting an embargo on the Queensland town for its lack of progress on flood mitigation.

New policies will be sold on existing risk, but pricing for the whole town will be reviewed when the work is completed in April.

The insurer lifted the ban when construction of a flood levee began last week.

Suncorp Personal Insurance CEO Mark Milliner says the premium on a typical $300,000 home may fall about 30%, but owners in the most flood-prone areas could see reductions of up to 80%.

Since 2008 the insurer had paid more than $100 million on home and motor claims in the Roma region following storms and floods, he says.

Suncorp sparked community anger last year when it embargoed new policies in Roma and Emerald following flood losses.

In February it announced it would offer cover for Emerald properties again after the State Government pledged $5 million for mitigation.

However, talks with the local council are continuing and there has been no mitigation of any scale, a Suncorp spokesman told insuranceNEWS.com.au last week.

The company has repeatedly called for more government investment in mitigation infrastructure, plus changes to building approval and planning conditions.

“In Charleville, where their mitigation works are now complete, we were able to further reduce the cost of new home and contents insurance policies by an average of $400,” Mr Milliner said.

“Without their investment in mitigation, the average price of a new policy in Charleville would have been more than $3000 and today it is about $900.”