People in Ingham and surrounding areas of north Queensland are being forced to reduce home cover, increase excesses or go without insurance due to soaring premiums, a council survey has revealed.

Hinchinbrook Shire Council’s insurance affordability and availability study found almost 75% of respondents think premiums have become unaffordable, 42.5% say excesses are too high and 41.8% believe there is limited competition between insurers.

Mayor Ramon Jayo says the survey of more than 300 residents shows families are being pushed to breaking point.

“People are working hard, paying their rates, maintaining their properties and investing in resilience measures, yet many feel they are being penalised simply because of where they live,” he said.

“For most people, their home is their biggest asset. The thought of not being able to properly insure it causes significant stress and uncertainty.

“We’ve heard from pensioners worried they won’t be able to afford their next renewal, families struggling to absorb annual increases, and homeowners who feel trapped because they have few insurer options available to them.”

Among residents who had experienced insurance difficulties, more than half were advised their property was in a flood-prone area.

Many respondents expressed frustration that flood cover is often bundled into policies regardless of a property’s individual history, elevation, mitigation work or resilience measures.

Cr Jayo said: “If someone has invested thousands of dollars elevating their home, improving drainage, strengthening their property against cyclones or undertaking mitigation works, they want those efforts recognised.”

The survey also highlights concern that insurance pricing is driven by postcode rather than property-specific risk assessments.

Residents want more transparency around premium calculations, greater competition in the regional insurance market, and the option to tailor flood cover to individual circumstances, the council says.