Climate Valuation has released a new tool that can help Australian homeowners prepare for the impacts of extreme weather and climate change on the future value of their homes and the affordability of home insurance.
With the Property Risk Portal, homeowners and homebuyers can access tailored individuals reports for specific properties, which include climate risks information and insights on the maximum value of risk and the cost of potential damages.
Climate Valuation CEO Dr Karl Mallon said these data sets are historically used by banks and are not available to homeowners and homebuyers.
“As Australia enters the springtime property season, potential buyers need to look beyond the immediate concerns of inflation and rising interest rates and consider both the immediate and long-term impacts of climate risk when buying a property,” he said.
Furthermore, Dr Mallon said it is crucial that homeowners have an idea of the availability and cost of insurance and the possible effect of climate hazards on market value by the end of their mortgage term.
“It’s the type of due diligence check we expect homeowners, lenders and possibly even regulators will consider a norm in the coming years,” he said.
“These factors will affect the future saleability and appeal of a home.”
According to a study from Climate Valuation, one in eight homes may be at moderate or high risk from climate related hazards by 2030.
Currently, close to 500,000 properties in Australia are already considered at high risk from climate change ad extreme weather.
Meanwhile, 30% of Australian homes are likely to be at moderate or high-risk by 2100 under the current emissions trajectory.
A separate report from the Climate Council released early this year identified 10 areas that have the highest share of properties most at risk for being uninsured by 2030. These areas include:
- Nicholls, Victoria: 27% or 25,801 properties
- Richmond, New South Wales: 20% or 22,274 properties
- Maranoa, Queensland: 15% or 9,551 properties
- Moncrieff, Queensland: 14% or 18,032 properties
- Wright, Queensland: 14% or 12,140 properties
- Brisbane, Queensland: 13% or 19,355 properties
- Griffith, Queensland: 13% or 14,812 properties
- Indi, Victoria: 11% or 11,215 properties
- Page, New South Wales: 11% or 11,691 properties
- Hindmarsh, South Australia: 11% or 10,775 properties
Overall, one in 25 Australian properties will be “effectively uninsurable” by 2030 due to extreme weather and climate change.
Photo by @wwwynand on Unsplash.