Insurance Nightmare...

If ever there was a case for due diligence this is it...

The Territory Insurance Office (TIO) was the state backed insurance company for the nt. It worked by everyone in the NT paying pretty much the same premium. The people in the centre would essentially subsidise the people in the Darwin/Katherine flood zones.

This allowed for development in areas that probably should not have been developed.

Last year TIO was privatised. The new owners have moved to a per property model. Now people who are high and dry are getting a slight reduction in insurance. People who bought in the flood zones are getting quotes of up to 10k per annum...

Territory Insurance Office (TIO) defends premium price hikes following on from privatisation - ABC News (Australian Broadcasting Corporation)

Anyone thinking of investing in the NT will need to consider this....

 

There is a lot to go into in regards to insurance and insurers & this is another reason to check on things on the ground.

I started an insurance thread Insurance and it had little response, it is one of the things people ignore till they have a problem it seems.

Maybe you can copy the above to that thread too.

 

Interesting acronym:
Telecommunications Industry Ombudsman - TIO

 

Can't say I'm overly impressed with the idea - surely the people who want to live in the trouble areas need to accept the cost associated with it.

Now it has gone private, it has obviously forced the issue. Obviously the private firm decided there was more money to be made running a regular insurance model.