Consumer watchdog Choice has called on local, state and federal governments to do more to improve planning and infrastructure in the face of rising home and contents premiums.

Its latest insurance survey shows 89% of the 2200 respondents reported price hikes on householder policies.

“We know a lot of people are reporting premium price rises of 20-30%, but we’ve heard anecdotally of people facing increases of up to 1000% for home and contents cover,” Choice says in a statement.

The consumer group says the evolution of the standard flood definition and key facts sheets for insurance policies are positives, but says governments need to do more to work with the insurance industry, particularly in towns where floods are inevitable.

“Wagga Wagga in NSW escaped the worst of the flooding because its levee infrastructure was sound, and town planning laws meant that most homes and businesses were away from the flood plain,” Choice says. “Roma in Queensland was a different story, with catastrophic results for local residents and businesses.”

Choice also wants the industry to work towards creating product disclosure statements that are simpler and more easily understood.

The consumer organisation says there is “no easy answer” on the issue of whether or not flood insurance should be mandatory or have an opt-out provision.

“People who have a low flood risk don’t want to pay for an extra they don’t need,” Choice says. “On the other hand, if everyone is covered it closes the coverage gap we now have.”