Caravan park operators in regional Australia are facing rising insurance costs and narrower coverage as natural disasters increase in frequency and severity. Brokers report that premiums for caravan parks have grown significantly in recent years, while policies often carry higher excesses and exclusions that limit practical protection.
“Essentially, you’re paying more and getting less,” said Glenn Thomas, principal of GT Insurance Brokers in Bendigo. Operators say they are being forced to choose between accepting reduced coverage, self-insuring, or operating without the safety net many assume is standard.
Reports indicate sharp increases in premiums. Owners of Kingston-on-Murray Caravan Park in South Australia reportedly paid $34,000 in 2024, compared with under $15,000 in 2020. The Victorian Caravan Parks Association has stated that some members have experienced premium increases of up to 300%.
Thomas highlighted the rising excesses as a key issue. “Some of the excesses on small businesses now—like caravan parks—are $5,000 for a claim, or $10,000 for storm, $20,000 for trees, and $50,000 for bushfire,” he told InsuranceBusiness.
Such high excesses can effectively limit coverage for common losses, including fallen branches, storm-damaged awnings, or flash-flood damage to electrical infrastructure. These costs often coincide with periods when cash flow is disrupted, compounding the financial impact of a claim.
Caravan parks involve complex physical and operational risks, including accommodation units, camp kitchens, playgrounds, pools, LPG infrastructure, power distribution, wastewater systems, and high occupancy turnover. A single major event can damage property, reduce revenue during peak season, trigger cancellations, and create long-term liability issues.
The Insurance Council of Australia has identified caravan parks as among the sectors affected by rising public liability costs and has advocated for reforms to civil liability laws. Insurers maintain that premiums reflect increasing extreme-weather losses, estimated at $4.5 billion annually in the 2020s, compared with roughly $1.5 billion in the 1990s.
For the industry, potential solutions include more targeted underwriting that rewards mitigation measures, such as vegetation management, drainage upgrades, raised services, firebreaks, flood plans, stronger building materials, and documented maintenance regimes.
Brokers can assist by negotiating meaningful sublimits and helping operators compile evidence of risk management practices. Clear communication about coverage limitations and practical risk mitigation is key to sustaining business operations while maintaining insurance protection.
Caravan parks play a critical role in domestic tourism, regional employment, and community cohesion. Ensuring access to viable insurance coverage is essential to sustaining both the business and social functions these facilities provide.