RACQ reveals flood-related settlement figures

RACQ Insurance says it has settled the majority of motor and home claims relating to severe floods that impacted Queensland earlier in the year.

The organisation says it has paid out more than $100 million in total claims, with the bulk of its 2667 car insurance claims settled with total loss cash reimbursements.

RACQ says the figures are “important milestones” in its flood response as affected communities continue to recover.

“We’re processing claims as quickly as possible to help members get back on the road following one of the largest flooding events in Australia’s history,” GM Claims Trent Sayers said.

“Of the more than $100 million in total payments, $84.5 million has been paid out as cash settlements and there has been $14.3 million in supplier payments.”

RACQ says car owners affected by the flood will be entitled to additional support in receiving replacement vehicles as part of the organisation’s partnership with prominent Queensland car dealerships.

“RACQ flood-affected car owners can also take advantage of our exclusive agreement with dealerships including Eagers, Autopact and Motorama, making the search for a replacement vehicle a little easier,” Mr Sayers said.

RACQ says 83.7% of flood-affected home claims have been completed, with almost 5000 homes rebuilt or undergoing repairs.

Mr Sayers says the high quantity of claims and rising repair costs provided additional challenges to the recovery process.

“We have more than 2500 builders and other personnel working on claims, however the sheer volume of claims, as well as the significant strain on labour and materials prior to this event, means it’s going to take longer than usual for repairs to be completed,” Mr Sayers said.

“The building boom and covid have contributed to driving up demand for trades and materials, and this extends wait times and increases costs. Overall, construction material costs have risen around 20% in the past two years, with steel prices jumping 60% since 2020.”

Mr Sayers says it has prioritised assessing home repairs in at-risk and vulnerable communities. RACQ recently pledged $2.1 million in grants to assist community and sports groups in south-east Queensland.

“We understand this is a challenging time and we’re committed to being there for impacted members during this process, as well as continuing to serve those with existing insurance claims outside of the flood event.”