Insurers are to cut some property premiums in Queensland by up to 70% following the completion of flood mitigation works.

Last week the town of St George, 390km west of Brisbane, opened a levee, leading Suncorp to cut average premiums by 15% and RACQ Insurance to go even further.

“With the completion of these flood mitigation works, RACQ Insurance expects those properties previously flood-affected will now achieve, on average, premium savings of up to 32%,” CEO Bradley Heath said.

“RACQ Insurance applauds any measures designed to protect homes and critical community infrastructure from flood perils.”

Suncorp will cut renewal premiums in St George from April 10.

“In Charleville and St George, where levees have been completed, we’ve dropped the price of premiums significantly,” a spokesman told insuranceNEWS.com.au.

Charleville, 760km west of Brisbane, recently completed a levee, house-raising and water diversions. Some properties in Roma, 515km west of Brisbane, may gain larger reductions, the Suncorp spokesman says.

“With the Roma levee almost complete, we’re working with council to get access to detailed flood modelling to determine the new flood risks properties will face, but the initial data we have indicates some properties may see the cost of their premium fall by up to 70%.”

In Charleville, had no mitigation work been undertaken, the average cost of a Suncorp home policy would be more than $3000, compared with $990 now.

In St George Suncorp has paid out on almost 170 claims costing more than $5 million since 2008.

After extreme weather events in 2010 and 2011, Suncorp stopped writing new home policies in Roma, Charleville and Emerald, which is 270km west of Rockhampton.

The embargo remains in Emerald because the insurer is yet to see firm mitigation plans, the Suncorp spokesman says.

Queensland Community Recovery and Resilience Minister David Crisafulli has called for insurers to cut premiums by up to 80% in communities such as Roma, as promised when levees were proposed.

He is working with homeowners to compare bills from before and after the levee installation.

The Insurance Council of Australia told insuranceNEWS.com.au insurers are making individual, commercially driven decisions about the impact of levees on premiums.

The State Government says it has pooled resources of about $50 million to help councils pay for more work.