Home and contents premiums are dropping in flood-prone Charleville after the completion of mitigation projects including a levee bank and diversion works.

Suncorp premiums will fall by an average of $400 at the next renewal, and it is expected other insurers will take the reduced risk into account.

Murweh Shire Council CEO Chris Blanch says about $22 million has been spent in the past six years on the Warrego River levee and Bradley’s Gully diversion.

“We really have enormously reduced the flood risk out here and Suncorp has had a look at that,” he told insuranceNEWS.com.au. “We have done as much as we think is humanly and economically possible to protect the town.”

Suncorp Personal Insurance CEO Mark Milliner says the Queensland town’s average premium would now exceed $3000 without mitigation.

“This was reduced to an average of $1400 following the levee completion and now to $990 upon full completion of works.”

Westpac Insurance spokesman Coran Lill says the company has assessed properties individually and accounted for changes to risk.

“Once we have assessed the relevant information from Charleville, of course we will look to see what impact that will have on the pricing of people’s premiums,” he told insuranceNEWS.com.au.

RACQ Insurance says it “constantly reviews premiums to ensure the price charged is reflective of the risk”.

Governments are under pressure to improve mitigation after premiums ballooned and insurers withdrew cover following recent floods.