Queensland floods will add to Victorian Rebuilding Costs

According to the Insurance Council of Australia (ICA), a media release on April 13, 2022, states there has been more than 97,000 claims lodged with the Insurance Industry in relation to Queensland floods at an estimated cost of approx. $1.36 billion.

To assist the rebuilding of affected communities, the Queensland government is providing financial incentives to Trades people.

Under its “Tradies in Paradise Incentive Scheme, the Queensland government is targeting building qualified industry trades people from Victoria, South Australia, and Western Australia by offering one-off financial incentive of $1750 to accept flood reconstruction employment in affected regions of Queensland.

In a market with low unemployment, increasing building material costs and the most significant shortage of skilled tradespeople, the Housing Industry Association states there is no doubt costs are likely to increase as demand increases for such services in Victoria.

According to the latest Cordell Construction Cost Index construction costs nationally has last year already increased by 7.3% the highest annual hike since March 2005.

Master Builders Victoria acknowledge one of the biggest challenges facing the building industry is escalating building product prices and supply shortages.

What does that mean for You as an Insured?

With both Labour (Carpenters, Electricians, Plumbers) and building costs increasing, make sure you annually review your residential / Commercial Building sum insured so that you are insured for replacement value and not underinsured.

Do not rely on the insurers automatic CPI increase as this may be insufficient to represent an accurate replacement value of your building, according to our directors Dino Di Giacomo and Fred Nadde.

Whilst our staff are not valuers, they can recommend commercial Valuers to complete a report to assist you to insure your property correctly.

You may also visit our website and get links to industry valuation tools for residential properties which give you rebuilding cost estimates provided by Cordell’s.

Do not leave it to chance, always insure your property for the correct replacement value in the event of a claim.