Home and strata insurance in North Queensland

Why cover costs more in North Queensland

The coast from Mackay to Cairns and Cape York sits in the cyclone belt. Homes here face destructive wind, storm surge and flooding from heavy rain. Insurers price for that risk, and for the cost of rebuilding in regional towns after a large event.

The Australian Reinsurance Pool Corporation (ARPC) said in its cyclone pool statistics report for September 2025 that the highest pool premiums are concentrated in Mackay, Proserpine and the offshore islands, Cairns, Kununurra to Broome and the Pilbara. Three of those five areas are in North Queensland. ARPC also reported 119,505 cyclone pool claims received across Australia as at 31 October 2025, with Cyclones Alfred, Jasper, Kirrily, Sean and Zelia the main contributors.

What premiums look like

The second interim report of the ACCC's Northern Australia Insurance Inquiry (2019) found home and contents premiums in northern Australia were on average almost double those elsewhere. It put the average Townsville premium at $3,088 a year, with one in ten Townsville households paying $4,682 or more, against an average of $1,400 outside northern Australia. It estimated that 17 per cent of north Queensland homes had no building insurance.

The ACCC's fifth and final insurance monitoring report (June 2026) found the average home and contents premium in north Queensland was more than $3,100 in 2024-25, compared with $2,310 in the rest of Australia. Measured per $100,000 of sum insured, average combined home and contents premiums fell 14 per cent in Mackay, 12 per cent in Cairns and 3 per cent in Townsville after insurers joined the cyclone pool.

Strata costs more again. The ACCC's fourth insurance monitoring report (July 2025) found strata premiums remained very high across northern Australia. For the schemes paying the highest premiums, it found falls of 28 per cent in Townsville, 19 per cent in Mackay and 17 per cent in Cairns.

The cyclone reinsurance pool

The pool is an Australian Government scheme that began on 1 July 2022. ARPC runs it. Insurers pass the cyclone part of their risk to the pool, which is backed by a $10 billion government guarantee that is reinstated each year. The aim is cheaper reinsurance for insurers, passed on as lower premiums in cyclone-prone areas.

What it covers

  • Damage from wind, rain, rainwater runoff, storm surge and riverine flood caused by a cyclone.
  • Damage that happens from the start of a cyclone until 48 hours after it ends. ARPC declares each event using Bureau of Meteorology observations.
  • Home building and contents policies, landlord policies, residential strata, and small business property policies with a total sum insured of up to $5 million.

What it does not do

  • It does not apply to flood, storm or bushfire damage that is not linked to a declared cyclone.
  • It does not add cover to your policy. If your policy leaves out flood or storm surge, the pool does not change that.
  • It does not deal with households. You still buy cover from, and claim through, your insurer.
  • It does not bring in new insurers by itself. The ACCC's 2026 report found no new insurers had entered northern markets since the pool began.

The Australian Government announced a review of the pool's legislation, the Terrorism and Cyclone Insurance Act 2003, in September 2025.

Practical steps

  • Ask about mitigation discounts. ARPC reports that pool discounts apply for roller door bracing, window protection, roof tie-downs and roof replacement. The ACCC's 2026 report found more insurers now recognise these upgrades, but the information they give varies. Ask each insurer what it recognises and what evidence it needs.
  • Check the Household Resilience Program. This Queensland Government program has offered eligible owner-occupiers in coastal areas grants of up to $15,000 towards cyclone upgrades. Phase 4 closed to new applications on 2 October 2026. Check the program page for any later round.
  • Check your sum insured. Building costs have risen. Use a building cost calculator or a valuation, and allow for demolition, debris removal and professional fees.
  • Compare excess options. A higher excess lowers the premium. Ask whether a separate excess applies to cyclone claims. Choose an amount you could pay after a loss.
  • Read the flood and storm surge wording. Policies differ on flood, storm surge and rainwater runoff. Compare the product disclosure statements, not only the prices.
  • Consider a local broker. Strata schemes, older homes and homes with past claims can be hard to place. A licensed broker can approach insurers and underwriting agencies that do not sell direct. Ask how the broker is paid.

If cover is declined or unaffordable

  • Ask for reasons. You can ask an insurer in writing why it refused, cancelled or did not renew cover. The Insurance Contracts Act 1984 requires a written answer.
  • Complain to the insurer first. Use its internal complaints process. If that does not resolve it, the Australian Financial Complaints Authority (AFCA) considers home, contents and strata insurance complaints. AFCA is free for consumers.
  • Ask about hardship help. Part 10 of the General Insurance Code of Practice covers people who owe money to an insurer, such as an excess. Options include more time, instalments or a reduced amount, and the insurer must decide within 21 calendar days. The Code does not require help with premiums, so also ask about paying by instalments and whether a fee applies.

Licensed insurance businesses registered in the region

From the ASIC register. Listing is not a recommendation, and brokers elsewhere can also arrange cover here.

Sources

Last checked: 2026-10-06

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