If you operate a caravan park (or are thinking of acquiring one), you’ve likely experienced shock when you’ve seen your insurance bill come through. As insurance brokers specialising in parks, we’re often asked why premiums are so high and what can be done about it. In this post, we’ll unpack the causes of high premiums (especially in northern and high-catastrophe locations), why the market is so tight, and illustrate why using Morgan Insurance Brokers your best bet for securing cover and managing costs.

The broad reasons premiums are high

Here are the key drivers of premium inflation in the caravan/holiday-park space:

Escalating natural-catastrophe and large loss exposure

• Parks are often located in coastal, floodplain, cyclone-prone or bushfire-exposed areas: close to waterways, the sea or in northern/climatic risk zones.
• Insurers are seeing more frequent and severe losses: storm damage, floods, large claims from amenities (swimming pools, water slides, jumping pillows) and the consequent business interruption.
• The size of assets: cabins, powered sites, amenities, communal buildings, infrastructure, the rebuild or repair cost is significant. And when a loss occurs, interruption of guest income compounds the cost.
• For parks in “northern locations” (or remote/regional) the challenge is often greater: insurers regard them as higher risk, harder to access, more exposed, and sometimes with less readily available mitigation/response services.

Shrinking insurer capacity and a hard insurance market

• There is a lack of insurers willing to take on caravan park risks — especially in higher-risk geographies. International insurers have pulled back from Australia’s leisure/tourism-accommodation risks.
• With fewer underwriters in the market, this reduces competitive pressure and results in higher premiums and less favourable terms (higher excesses, exclusions).
• Insurers that remain are more selective: they apply stricter risk criteria, higher excesses, exclude certain activities/locations (e.g., cyclone, flood).
• The “hard market” (where premiums rise, terms harden, availability tightens) is very evident in this sector.

Complex risk profile of caravan parks

• Unlike a standard business, a caravan park has many moving parts: guest accommodation (cabins, powered/unpowered sites), on-site amenities (pools, playgrounds, water-sports facilities), sometimes hire equipment or boats/kayaks, public liability insurance exposures, communal facilities. Insurers must price for all of these.
• Parks often face seasonal variations, sometimes remote access/limited services (fire brigade, storm response, drainage), which means higher potential for loss, or slower recovery.
• If a park is in a remote or regional “northern” location (e.g., far north Queensland, remote NT, outback WA) the remoteness itself increases risk: logistics, rebuild/repair costs, and access to services are more challenging.

Inflation, rebuild cost, supply chain and labour issues

• Rebuilding after a storm or major loss is more expensive than previously. Materials, labour, logistics have increased in cost. Insurers reflect that in premiums.
• Business interruption costs: the guest revenue lost while repairs happen is a major component of risk.
• The pool of assets (cabins, powered sites, communal amenities) has grown in many parks (to remain competitive), so overall exposure has increased.

Why northern, remote or high-catastrophe locations face worse pricing

• Exposure to cyclones/storms: Northern Australia (e.g., Queensland, NT) sees cyclones, severe tropical storms, flood-risk, which increases risk. Underwriters view those locations differently — higher premium or exclusions.
• Remoteness: Remote parks may have slower emergency services, longer access for rebuild/repair, higher transport/logistics cost — all increasing risk/claim cost.
• Market scarcity: Many underwriters may avoid or limit capacity for remote northern areas, meaning less competitive quotes and less choice for operators in those zones.
• Large losses: A single major event (cyclone/flood) can wipe out a park, or lead to massive claim exposures. Thus insurers load for “tail risk” (low‐frequency, high‐cost events) especially in those zones.
• Perceived clustering of risk: If many caravan parks are located in the same geography (coastal, floodplain), the insurer’s entire portfolio may be exposed simultaneously — this drives reinsurance cost which is passed to the client.

What does all this mean for a caravan park operator?

• Expect higher premiums, higher excesses, possible exclusions or restrictions (e.g., flood/cyclone cover may be excluded or loaded).
• Be aware that your location and exposure profile will heavily influence your premium: regional vs city, remote vs easily accessible, proximity to water, etc.
• Prepare for less market choice: fewer insurers willing to quote/expose themselves.
• Recognise that risk-management and mitigation matter: the better your preparedness and documentation of your processes, the stronger your negotiating position.
• Understand that insurance cost is a business cost, and in some situations operators may consider self-insurance or risk transfer strategies—but that’s only for those with sufficient capital and risk appetite.

How working with a specialist broker gives you the best chance

Access to specialist underwriting capacity

A broker who knows the caravan park industry inside out already has connections with insurers who actually understand how your business works and who are more likely to offer you a quote when the big, general insurers won’t. Because they know where to look, they can find niche providers and custom insurance options made for parks like yours, giving you more choice and better chances of getting the right cover.

Better risk presentation & documentation

A good broker doesn’t just hand your details to an insurer, they make sure your park looks its best on paper. That means pulling together all the right information about your property, how you maintain it, what safety measures you have in place, and how prepared you are for things like floods or storms. The more complete and professional your risk profile looks, the more confident insurers feel, which can help reduce how much they load onto your premium. For example, showing that you’ve got a solid cyclone or flood evacuation plan, proper drainage, and well-maintained playgrounds tells underwriters you take risk seriously and that can make a big difference in what you pay.

Comparative shopping and expert negotiation

Since there aren’t many insurers offering caravan park cover, having a broker who can shop around and negotiate on your behalf is a huge advantage. We’ll do the legwork, comparing policies, talking to underwriters, and making sure you’re getting the best deal possible. And we don’t just look at the price; we’ll help you understand the real value of each option, what’s actually covered, what’s excluded, the excess you’ll need to pay, and how good the claims service is when you really need it.

Ongoing advice and renewal strategy

A good broker keeps an eye on the market for you and helps you stay one step ahead when it comes to managing your insurance costs. They’ll give you practical advice on things like adjusting your excess, improving risk controls, or cutting back on activities that push up your premium. They’ll also help you see how your cover and costs stack up against similar parks, and work with you early on your renewal so you can plan ahead whether that’s making improvements, reducing risks, or finding smarter ways to keep your premiums under control.

Guidance on alternative strategies

If cover options are limited or the premiums are through the roof, a good broker can help you think outside the box. They’ll look at different ways to structure your insurance, like splitting property and liability cover, layering policies, or even exploring partial self-insurance or specialist programs. They can also talk you through what cover you really need versus what you might be able to live without, making sure you understand the risks either way. It’s all about finding practical ways to reduce exposure and make your insurance more affordable without leaving you unprotected.

If you’re finding caravan park insurance hard to secure or the premiums are climbing higher every year, you’re not alone, but you don’t have to face it on your own either. Working with Morgan Insurance Brokers who understands the caravan park industry can make all the difference. We’ll do the hard work for you finding the right insurers, comparing cover options, and negotiating better terms so you can focus on running your park.

Get in touch today to chat about your options and see how we can help you find the right cover at the right price.