Judith and Paul Collins say they couldn't afford to buy a new property after the 2019 bushfires so were forced to rebuild on their land, which was suddenly considered a high fire risk for insurance purposes.For those in zones at risk of floods, fire or cyclones, premiums have for many become unaffordable.In December 2019, Judith and Paul Collins were forced to flee their home in Buxton in the NSW Southern Highlands before it burned to a crisp.
Her house now little more than a skeleton, she would like to relocate somewhere above the flood level but housing and insurance costs mean this isn't an option her. So the 70-year-old plans to rebuild, though she's still waiting for her insurer to pay out and she's anxious about what her insurance costs will look like in the future."I have to rebuild then I'll have to get reinsured and I still don't know what that bill will look like," she told SBS News.
Ms Conroy says people are also anxious that the grants and payouts available are insufficient to prepare their homes for another big flood. And the cost of the February to March floods in 2022 has now reached more than $5.65 billion, making it the most expensive natural disaster in Australia’s history.What is the Doomsday Clock and why have atomic scientists just moved it closer to midnight?
"We're having floods that are higher than we've ever seen before, cyclones coming further south than they've ever come before, and fires that are more intense than they've ever been before.The increasing costs of maintenance, repair and replacement to properties as a result of worsening extreme weather will see insurance premiums continue to rise, the Climate Council says.
"If you go forward in time, everything gets worse, because on the current emissions trajectory, things will get worse," Ms Hutley told SBS News. "Even if we do more in policy, it'll still get worse before it starts to plateau."Worsening extreme weather means increased costs of maintenance, repair and replacement to properties. With this risk increasing, insurers are raising premiums to cover the increased cost of claims and reinsurance.
The money will go on infrastructure to make communities more resilient, such as flood levees and seawalls, and grant programs that provide funding for people to retrofit their homes to make them more resistant to fires, floods or cyclones.
Maybe they should be more concerned that inflation is double the official number, not coming down, and at this rate the AUD will be worthless in 5 years.