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Bligh called for insurers to show compassion and flexibility, amid reports some residents faced difficulty with payouts against a damage bill expected to top A$5 billion, with $1 billion of that to be underwritten by insurers.
"It's not in the interests of anyone in our community, including those companies, to stall or delay recovery," said Bligh, whose disaster handling has won wide praise, reviving ruling Labor's flagging hopes of re-election in the state.

Bligh said many Queenslanders had taken out insurance believing they were covered for floods and were now discovering they were not protected.

1 2 Next The flooding, which started before Christmas, continued in other areas of Queensland, with the 6,000 residents of Goondiwindi southwest of Brisbane facing a record flood.

Aerial views of Brisbane showed a sea of brown with rooftops poking out, but the water was receding.

Boats have had to be used in many areas to reach houses, with sofas and fridges floating in filthy water, and residents with no idea when they can return.

"Nobody told me this would become this serious, this terrible," said Su Liu, a Chinese student studying marketing at the University of Queensland.

She had fled her house near the riverside university on Tuesday as water poured into the second floor of her apartment building and was sheltering in an evacuation center.

Benifits of insurance

Most of us think of insurance as a necessary evil at best. We rarely, if ever, see the benefits of purchasing insurance.
We need only to look at some of the basics of how insurance adds to our society to understand its value.
First, insurance reduces the money we all have to pay for uncompensated victims of accidents. Without insurance, many who were injured in an accident would become a drain on state and federal government agencies.
In short, your taxes would increase in order to pay for rehabilitation or care of the sick and injured.
You need an insurance policy to purchase a new car or a home. Without insurance to cover a bank’s financial interest as a lien holder in your loan, how would you convince the bank to lend you money in the first place?

Another benefit to us as individuals is mandatory liability auto insurance. If someone ran into your car and caused you bodily injury, how would you pay for the medical bills without insurance?

Or if someone got injured on your property, how would you pay for the damages?
Again, this saves us all from paying huge tax bills. If insurers didn’t buy these bonds, we would have to settle for poor roads and bridges, or foot the bill ourselves via higher taxes.