June 4th 2024.
Recent studies have revealed that approximately half of all homes in Australia are at risk of natural disasters, leaving millions of people vulnerable due to exorbitant insurance premiums. According to a report by Domain, around 5.6 million properties are in danger of bushfires, almost 1 million are at risk of floods, and thousands more are threatened by coastal erosion. In some states, as much as two thirds of all properties are in harm's way.
The suburb of Ballina in New South Wales has been identified as the area with the highest risk of flooding in the country, while Victoria's Upper Yarra Valley is most susceptible to bushfires, and Queensland's Surfers Paradise faces the greatest threat from coastal erosion. This alarming revelation was brought to light at a recent housing forum, where it was clear that many Australians are unaware of the dangers their homes are facing.
"We found that only 29% of Australians are aware of the risks associated with their homes in the event of a natural disaster," shared Nicola Powell, head of research at Domain. As the population continues to grow and more people are priced out of insurance, the potential impact of natural disasters on homeowners is a serious concern. "We are seeing more and more people living in precarious areas in order to have a place to call home," Powell added.
The issue of rising insurance premiums is also a major concern, with many homeowners receiving quotes that are simply unaffordable. "If you live in a high-risk area for bushfires or floods, chances are you have been hit with an insurance premium that is well beyond your budget," explained Steve Mickenbecker, a group executive at Canstar. He also pointed out that some insurers may even refuse to renew policies for those living in high-risk areas.
The severity of this growing crisis has prompted industry leaders to call for urgent action from various sectors and levels of government. "Often, discussions about property and climate change are held separately. We need these conversations to happen together," Powell emphasized. It is clear that a collaborative effort is needed to find a solution to this pressing issue.
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