North Queensland homeowners hit by last month’s floods will receive help to improve their properties’ resilience under a grant program announced today by the state and federal governments.

The Insurance Council of Australia, which this morning unveiled its election wish list calling for a national $30.15 billion flood defence fund, has welcomed Stronger Homes Grant scheme.

Qualifying applicants will receive up to $10,000 to make changes such as raising electrical switchboards and hot water systems on plinths or adding wall brackets to protect against flood damage. They can also use the cash to replace wall linings with flood-resistance materials.

ICA deputy CEO Kylie Macfarlane says grants will make a “real difference” to north Queenslanders picking up the pieces after storms and flooding battered the region last month.

“Reducing flood risk though programs like these not only better protects lives and property, but is the only sustainable way to put downward pressure on premiums, which are being impacted by worsening extreme weather, inflation, the increasing value of our assets, and the cost of reinsurance,” she said.

The extreme weather in north Queensland started on January 29 and lasted nearly two weeks. ICA says the industry has received more than 7000 claims, mostly for home damage.

It says the grants will let insurers make resilience improvements beyond the scope of a customer’s home cover, because insurance policies generally provide replacement on a “like with like” basis.

“Depending on the home, the cost of repairs and the customer’s insurance cover, the program could also support replacing floors with materials such as polished concrete or tiling,” it said.

ICA says that since 2022, Queenslanders have made more than 195,000 flood-related claims worth more than $4.5 billion.

RACQ, the motoring club that has agreed to sell its insurance underwriting business to IAG, says resilient home programs “should become the new norm in Australia’s most disaster-prone state”.

GM of advocacy Joshua Cooney said: “We know 67,000 homes in Queensland are at severe and extreme risk of flood. We shouldn’t wait for the next catastrophic event to implement these programs. As a nation, we need to recognise the unfortunate reality that natural disasters are getting more intense and frequent, and without significant investments in risk-reducing infrastructure, we’re only going to see affordability pressures and the cost to taxpayers increase.”

IAG has also backed the introduction of the fund. CEO Nick Hawkins says the program "is an important step in helping people across North and Far North Queensland to become safer, and better protected from flooding into the future".

The Stronger Homes Grant scheme is funded by the Commonwealth and states’ Disaster Recovery Funding Arrangements.

Queensland Housing Minister Sam O’Connor said: “Stronger, more resilient homes could also ease pressure on insurance premiums.”

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