Tuesday, 3 February 2026

 Gaelle BROAD (Northern Victoria) (21:00): (2254) My adjournment matter is for the Minister for Consumer Affairs and relates to major problems that some residents of Northern Victoria are facing trying to get insurance for their homes. One resident finished building a new house in November 2023, and a lot of their land is already cleared. At extra expense they built their new home to the bushfire attack level 29 standards, but their existing insurer recently refused to renew their insurance. A quote from another company came in at $16,000. They continued to pursue further quotes and, thankfully, were able to insure their property, but insurance costs are going up, with fewer options. This family is not alone. I have heard from residents from other parts of Northern Victoria concerned that some insurance companies have withdrawn from providing insurance altogether, yet a mortgage contract usually requires a resident to have building insurance. If you cannot insure your house, it is very difficult to sell.

One resident told me they have had conversations with multiple brokers who are calling clients daily saying that they cannot find them insurance. They inform me that the insurance industry was not consulted when BAL codes were introduced and do not believe the standards reflect the realities of rebuild costs or fire damage and do not incorporate building code details into their assessment. They received a quote of $50,000 for sprinkler systems and $200,000 for fire shutters for two buildings and noted these products are not tested to a measurable standard and do not make any difference to the resilience rating. They ask if there is scope for a community buying scheme for products such as roof sprinklers, where the products are tried and tested, starred and government approved. It appears as though the bushfire attack level rating of a home does not have any effect on the amount of insurance payable, only that BAL ratings are a factor in how an insurance company assesses risks and sets cover levels or premiums. In many parts of Northern Victoria the cost of insurance is escalating beyond what families can afford, leaving some without any choice but to sell their home and property. Obtaining insurance is problematic in many parts of Northern Victoria, and I look forward to the minister’s response to these concerns.