Now the realities of increased insurance costs are starting to bite.
Riverland Gardens resident, Graham Smith had the shock of his life when his home insurance quote from Allianz jumped from $4,305 to $58,369, which includes $48.374 of flood cover.
Communications from his broker said “unfortunately, insurers like Allianz are scrutinising homes in flood risk areas more closely and applying hefty increases to the flood cover premium”.
Mr Smith’s broker provided an alternative quote from CGU Insurance, for $9,039, still more than twice the previous year’s premium.
Online quotes he sourced himself came in at more than $12,000.
Eventually, by reducing his level of cover for both house and contents, he secured a quote from Elders Insurance for $5,100.
“I don’t like it, but I can afford to do it; how the bloody hell are young families with kids going to afford it?”
“I don’t like it, but I can afford to do it; how the bloody hell are young families with kids going to afford it?” he said.
“There’s no option to opt out of flood cover.”
Mr Smith said he spoke with Federation mayor, Cheryl Cook who told him public meetings were held during the consultation process, but very few people turned up.
“Maybe if people had known the severity they would have,” he said.
“Of course they are up in arms now.”
Cr Cook said the council was very aware of the distress the flood study implications were causing the community.
“Council is committed to working with the community and I can assure you that we are working very hard to explore all options available to us in respect to the findings,” she said.
“I am hopeful there will be viable options put forward to help mitigate and protect the Mulwala community from any future flood impacts … I look forward to receiving a further report on this matter at the April council meeting.”
Council CEO Adrian Butler confirmed councillors had the ability to rescind the resolution, but said they should consider the implications.
“There is a reasonable argument that having knowledge of an area being flood prone, and the fact that the study has been completed, means council has a responsibility to properly inform landowners regardless,” Mr Butler said.
WMA Water, which conducted the flood study, confirmed data used to calculate the rate of flow the Murray River catchment could generate at Mulwala was based on the historic record from before and after the construction of the weir.
It included the three largest recorded events in 1867, 1870 and 1917, and considered all data through to 2022 to determine the rate of flow in a 1% AEP (one-in-one-hundred year) event, which was used for planning purposes.
Albury MP, Justin Clancy said the situation was deeply concerning and had the potential to jeopardise building development across the Federation Council footprint.
“It is troubling to consider that new councillors may not have had the full opportunity to understand the ramifications of this plan,” Mr Clancy said.
“We have formally raised concerns with the council and in communication with the mayor I understand that council is examining its options.
“I am yet to hear anything further from council, but I have already initiated engagement with the Shadow Planning Minister on this issue.”
