One in 25 homes uninsurable by 2030 due to climate change, new study finds

“The February 28 flood is unlike anything we have experienced before. Lismore is a flooded town and flooding is part of our DNA,” she said. “When we prepared for this flood, we prepared for 12 meters. We would have recovered well. But what we got was 14.4. And the scale and devastation of this event was unlike anything we have ever experienced.

“I’ve talked to people who have lived here all their lives, local builders, born and raised here and they say it was different,” Bird said. “This is different. We have to react differently. We have to think differently and we have to make different plans from this.

Climate Rating considers properties to be effectively uninsurable – a point where insurance becomes unavailable or too expensive – when the annual cost of extreme weather damage reaches 1% of the property’s replacement cost. He assumes the replacement cost is $314,000, which he says is a conservative average.

He built a “climate risk engine” that combined data from local weather stations with specific location information, such as flood mapping and depths, elevation above sea level, tides and waves, soil type and forest cover; and data about the supposed building at that address, such as age, building materials, and design.

In addition to the 520,000 properties that will effectively become uninsurable by 2030, another in 10 will reach the “medium risk” classification by 2030, with average annual damage costs equal to 0.2% or more of the cost replacement of the property.

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The Climate Council is calling on Australia to cut its carbon emissions by 75% by 2030, about three times the current level of commitment.

A spokeswoman for the Insurance Council of Australia said that at present no area of ​​Australia was uninsurable, although there were some places with clear issues of affordability and availablity.

“Insurance prices are risky, which means that for those in areas prone to flooding or cyclones, cover can be expensive,” she said.

In late February, the insurance board called on the next federal government to increase its investment in resilience measures to protect homes against floods and cyclones to $200 million a year, which it said should be matched by states and territories based on 2014 productivity. Commission recommendation.

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