Queensland Housing Minister Robert Schwarten has warned Mackay homeowners whose homes were damaged in the February floods not to treat cash settlements from insurers as a quick fix.

“Often the cash settlement runs out long before the work has been completed,” he said last week. “The money can [also] be eaten up quickly by any number of other temptations.”

Insurance companies typically co-ordinate repair work, but in many cases the parties may instead agree a cash sum to settle the claim.