Recent flash flooding in Alice Springs is drawing attention to inland flood risk and mitigation at a time when the insurance sector is facing higher catastrophe losses and affordability pressures. On Feb. 12, thunderstorms caused the Todd River to rise quickly, inundating homes along Dixon Road and low-lying riverside streets including Leichhardt Terrace and South Terrace, and damaging sections of the road network in and around the town. Weather warnings have since been lifted and clean-up work is under way.
Northern Territory Police deputy regional commander James Gray‑Spence said unsealed roads across Central Australia had been most affected. “They’re saturated, and if you can stay off them, it will assist the contractors restoring any access to our local communities. There’s still a lot of water in the catchment; however, we don’t anticipate large levels of water coming down through the Todd River. It will continue to recede, but be aware of floodwaters and stay out of them,” Gray‑Spence said, as reported by ABC. For insurers, brokers, and loss adjusters, the event forms part of a series of inland flooding incidents that are informing risk models and pricing for homes, small businesses, and community assets in regions not historically seen as flood-prone.
One of the local organisations affected was Lutheran Care, a community service provider offering emergency relief and financial assistance. Its premises on Gregory Terrace, near the Todd River, were inundated, leading to a temporary suspension of services. Lutheran Care executive Susan Richards said the organisation had only recently moved into the building and had not anticipated the level of flood exposure. The disruption has interrupted weekly support to many clients and destroyed stored items. “As a result of this [flash flood], we’ve lost hundreds and hundreds of dollars’ worth of food and goods that we would normally give out. So, it’s had a big impact on our service delivery,” Richards told ABC. The organisation has asked for donations of food, blankets, and other essential goods. For insurance professionals, the situation illustrates the operational and contents risks facing community service providers and smaller not-for-profits, and the potential for gaps in cover, risk assessment, and continuity planning.
The flooding has triggered renewed discussion of mitigation measures in Alice Springs. Federal Member for Lingiari Marion Scrymgour said governments at all levels should “get serious” about investing in measures to manage flood risk in the town. “We’ve got to, as a matter of urgency, start putting in place flood mitigation strategies. Looking at early warning systems for the Todd River, for example. I think that’s absolutely critical,” Scrymgour said, as reported by ABC.
Scrymgour pointed to options such as dredging parts of the river, addressing silt build-up, and removing buffel grass as possible topics for consideration with Northern Territory and federal representatives. Alice Springs Mayor Asta Hill said she had “deep concerns” about feedback from residents who felt they lacked information during the event. “There was a week leading up to this event of heavy rain and so it’s important all the relevant parties meet and talk about what worked, what didn’t, and what we can do better next time. We know there will be a next time, and our residents need to feel informed and prepared,” Hill said.
The Alice Springs flooding has occurred alongside broader inundation across the Northern Territory. Residents from Daly River were evacuated to Darwin as river levels rose, with authorities reporting water through “quite a number of homes” at ankle depth before the river peaked and then began to fall. Secure NT said police and firefighters had commenced impact assessments as the Daly River slowly receded, having dropped below major flood level late on Feb. 13 after reaching 14.26 metres earlier in the week. Moderate flooding is expected to persist, with the Bureau of Meteorology (BOM) warning that additional showers and storms could cause renewed river rises and extend flooding.
In Beswick, east of Katherine, BOM reported that the Waterhouse River at Beswick Bridge fell below the minor flood level on Feb. 13 night after peaking during the afternoon. Authorities have continued to advise residents to avoid flooded waterways and for motorists to follow road closure directions. Taken together, these events are contributing to a broader picture of flood exposure across northern and central Australia, informing insurer assessments of riverine and flash-flood risk, infrastructure vulnerability, and emergency response planning.
The recent flooding coincides with national polling that indicates concern among Australian households about climate-related extreme weather and the cost of insurance. A YouGov survey commissioned by the Climate Council of more than 1,500 Australians found that 54% of respondents with home and/or contents cover are worried that events such as bushfires, floods, or storms will make insurance unaffordable or unavailable where they live. Almost half (46%) reported experiencing home or contents premium increases linked to extreme weather. The polling also shows that one in five people (22%) with home and/or contents insurance would consider going without cover if worsening extreme weather continues to raise costs. Cost is identified as the main barrier by 65% of homeowners without insurance and 53% of renters.
Climate Councillor and economist Nicki Hutley said many households are facing increased physical risk alongside rising premiums. “An ever-growing number of Australians are finding themselves caught between an insurance rock and a climate hard place. Families know their homes face greater risk from climate-fuelled disasters, and those same risks are helping drive insurance costs – and insurance itself – out of reach as more Australians struggle to pay their premiums,” Hutley said.
Climate Councillor and infrastructure expert Janice Lee said the recent season had again demonstrated the sensitivity of housing to climate-related hazards. “Unfortunately, this summer is another reminder that more and more often we’re seeing wild and unpredictable weather that burns and floods houses. The costs of these events, driven by climate change, hurt families, impact the value of homes, and create additional cost of living pressure. In 2025, Australians paid up to $700 more for home and contents insurance premiums than in 2024. Reducing climate pollution is critical to Australia’s economic security. Either we invest early to avoid climate change tipping points, or we pay for constant repair and adaptation, with ordinary Australians footing the bill,” Lee said.
The Insurance Council of Australia (ICA) has reported that extreme weather events in 2025 generated almost $3.5 billion in insured losses from 264,000 claims. As of 2023, around 5.1% of Australian households were underinsured and 3.3% were uninsured, affecting more than two million people. Within this context, the Alice Springs and broader Northern Territory events raise issues for insurers, underwriters, and intermediaries around inland flood modelling, the relationship between pricing and physical risk, the role of mitigation measures such as early warning systems and river management, and engagement with customers and communities on preparedness and coverage adequacy as climate and weather patterns evolve.
