Climate Change Means 1 in 25 Homes in Australia Could Become Uninsurable by 2030, Report Warns

Environmental News from Australia: 

  • The forecasts are based on a business-as-usual emissions scenario
  • Queensland, followed by New South Wales, are expected to be the hardest hit
  • In the worst-hit areas, more than a quarter of houses may have insurance premiums that are unaffordable.

About one in 25 Australian homes are at high risk of becoming effectively uninsurable by 2030, according to a new Climate Council report based on an analysis by a climate risk assessment group.

That number rises to more than one in 10 homes for some of the most affected regions, including parts of Brisbane, the Gold Coast, Greater Shepparton, Ballina, and Port Adelaide.

The report authors warn that Australia is heading for an “insurability crisis” as climate change increases the risk of worse weather extremes, resulting in “skyrocketing” insurance premiums.

That number rises to more than one in 10 homes for some of the most affected regions, including parts of Brisbane, the Gold Coast, Greater Shepparton, Ballina, and Port Adelaide.

The report authors warn that Australia is heading for an “insurability crisis” as climate change increases the risk of worse weather extremes, resulting in “skyrocketing” insurance premiums.

When a property becomes “effectively uninsurable”, it means the insurance premiums are so high as to be unaffordable to the average homeowner, according to Karl Mallon from Climate Valuation, who provided the Climate Council with the data.

Once there is more than a 1 percent chance in any given year of a property incurring major damage from an extreme weather event, that’s when premiums start to escalate, Dr. Mallon said.

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Source: ABC News

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