214
x
Bridges
x
Underground services
x
Wetlands/dams
x
Culverts
These exclusions are based on a risk analysis considering the likelihood and consequence of significant
damage to infrastructure, the availability of government funding and the cost of traditional insurance
across a range of assets with significant value.
In recognition of non-insured infrastructure, the State Government established the Local Government
Disaster Fund (the Fund) in 1990 to assist with the repair of uninsurable Council infrastructure, damaged
during severe weather events. The main eligibility criteria for the Fund is that the damage sustained to a
Council’s uninsurable assets must exceed 5% of its annual rate revenue and the repair must be beyond
the capacity of the Council to fund.
Local councils and the LGA Mutual Liability Scheme were contacted to access insurance information.
Information was not forthcoming during the project period.
A list of Council assets and their values are detailed in Section 10.
13.4. Summary
x
It is estimated that between 4 and 9 percent of home owners in Australia do not have building or
contents insurance. Based on non-insurance indicators (age, geographic location, levels of
education, employment status, dwelling types, and ethnicity) the Study Area has a relatively higher
propensity towards non-insurance.
x
The Study Area has a marginally lower rate of building insurance than Greater Adelaide. West
Torrens Council area has the lowest rate of home insurance, due in part to the higher proportion of
flats and units.
x
The average insured residential building value (private buildings) for the Study Area is estimated at
$340,396, around $87,402 or 79% below the average median dwelling price for the Study Area.
Detailed information for insurance claims in not available at a regional scale that aligns with the
Study Area.
x
In regard to commercial and industrial buildings, there are 17,105 policies in the Study Area, with an
average insurance value of $778,939 per policy.
x
Between 2006 and 2011, in the Study Area there was an average of 21 claims per year for wind
damage ($6,284 / claim) and 29 claims per year for other natural events ($6,478 / claim). The total
cost of wind, natural hazards and floods over the period was $1.58 million. This is based on data
supplied by Insurance Council of Australia.
