One In 25 Homes Uninsurable By 2030 Due To Climate Change

A new report has warned one in 25 Australian properties will be effectively uninsurable by 2030 as a result of extreme weather and climate change.

The Climate Council analysis mapped 10 of the country's electorates most at risk of becoming uninsurable due to flood, fire, and other extreme weather risk.

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The ‘Uninsurable Nation’ report conducted by Climate Valuation warns that Australia is heading for an "insurability crisis", resulting in "skyrocketing" insurance premiums, set to impact 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.

"We're talking about half a million properties — it's not insignificant," said Nicki Hutley, report co-author and economist with the Climate Council.

"This has implications for every single taxpayer in Australia."

- Nicki Hutley

The data analysed across hundreds of millions of properties has been downloaded into a new interactive Climate Risk Map, where Australians can plug in their suburb, local government area or electorate to discover the risk of fires, floods, and extreme wind, based on low, medium, and high emissions scenarios with estimated outcomes.

The map, along with the new report, fortify the urgent call for action in order to reduce emissions and avoid the situation deteriorating further.

Dr Karl Mallon, CEO of Climate Valuation, said they have analysed the impacts of climate hazards showing the physical risk extreme weather and climate change poses to homes around the country over the next decade and into the future.

“It’s striking how the number of affected properties grows under higher emissions scenarios. Reducing emissions would potentially save thousands of homes from worsening damage. I encourage all homeowners and buyers to ensure they fully understand the local hazards and get a property-specific report on their risk.

“Insurers and banks are already quantifying the risks from climate change. It’s essential that Australians inform themselves about these risks to their safety and financial wellbeing, which are well known to financial institutions and governments," he said.

Climate Council CEO, Amanda McKenzie said that “climate change is playing out in real time", urging all levels of government to move into action, before it is too late

"Many Australians now find it impossible to insure their homes and businesses. Over the past eight years the Federal Government has failed to meaningfully tackle climate change or prepare Australians for the worsening extreme weather events that we are now experiencing.

“The decisions of the next Federal Government will influence the future impacts of climate change for generations to come. Pollution from coal, oil and gas must begin to plummet and we must scale up our renewable power, so it meets the needs of all sectors of our economy,” she urged.

The Climate Council recommends Australia triple its efforts and take strong, bold measures to reduce its national emissions by 75 percent by 2030 and reach net zero by 2035.

It is also calling on all federal political parties and candidates to adopt policies that: enable swift and deep emissions reductions across the whole of the economy; eliminate fossil fuel subsidies; prioritise investment in resilience; account for climate risks in land use planning; improve building standards and compliance; and support communities to ‘build back better’.

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