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How is climate change going to affect your home insurance? The answer is A LOT
There's no more avoiding it. Climate change is real and it's hurting more than just the environment..
🏠 The Climate Change Council says that not only will many parts of Australia become uninsurable, but that some places may even become uninhabitable.
⛈️ The price of the extreme weather is adding up. The Insurance Council has announced that the floods across Queensland, NSW, and Victoria in February and March this year cost $4.8bn.
👪 This figure doesn't even take into account the thousands of families still displaced by the floods eight months later.
What you need to know
Right now a lot of Australia is underwater, with Shepparton in Victoria, the NSW border town Echua, Poatina in Tasmania, and Gemfield in Central Queensland all hit by flooding.
Insurers' have flagged that costs will go up to pay for extreme weather events, so that means higher premiums .
Home insurance costs have climbed 75% over the past five years.
One million Aussie households spend one month's salary on our home insurance.
More affordable properties tend to be in places where insurance is more expensive, or worse not available at all. It is however a risk that some have decided is worth taking to get into our competitive housing market.
The Climate Council says that Australia is heading into an insurance crisis with rising premiums and extreme events.
Their latest report listed places across Australia that are particularly vulnerable, with 90% of Shepparton being uninsurable by 2030.
The bottom line
Our insurance premiums are going to cost a lot more, and you may not be able to get insurance at all in some places.
🌧️ Check your policy, as what you're covered for in a flood may have changed. For example, we reported last week that Pluvial flood caused by extreme rain may not be covered on some policies anymore.
🛒 In order to get the best policy and price for your needs and budget, be prepared to compare and switch.
Financial Disclaimer:
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions.
