Australian floods likely to break the $1-billion insured loss mark

Floods ravaging large swaths of the Australian state of Queensland will likely trigger insured losses in the billions, according to unnamed sources in an Australian newspaper. If so, this would make the floods one of the costliest catastrophes to hit Australia.
Floods have battered the area since the end of 2010, where the average rainfall in Queensland was 250% above normal. The floods from December 2010 to the beginning of January 2011 triggered more than 4,300 claims, reported the Insurance Council of Australia. Within the past week, the flooding has intensified.
The City of Toowoomba in southeast Queensland was hit with a flash flood on Jan. 10, 2010 and intense floodwaters are expected to hit Brisbane on Jan. 12, reported the Sydney Morning Herald.
Experts expect floodwaters to reach 22 metres high in Brisbane, where as many as 6,500 properties are at risk. A comparable flood hit Brisbane in 1974, resulting in insured losses of $2.1 billion if adjusted for inflation and changes in population density, reported the SMH.
AIR Worldwide noted residential flood coverage varies considerably by insurer and location in Australia, while many commercial policies include flood coverage.
Suncorp Group writes about $1.4-billion worth of coverage in Queensland each year and has received approximately 2,500 claims for flood damage as of Jan. 11, 2011, reported the Sydney Morning Herald. Insurance Australia Group received 900 claims as of Jan. 11, 2011, marking an increase of 300 since the week prior.
Both companies told the Sydney Morning Herald it was still far too early to determine the total insured damages.