Climate change is increasing the risk of extreme weather events for Australian households. Floods and bushfires are becoming more likely and severe. As a result, household insurance costs are soaring – tripling in some cases. High-risk areas might even become uninsurable.
The national housing crisis is pushing low-income households in particular to seek affordable housing in areas at risk of flooding. There they can become trapped in a vicious cycle. Unable to pay soaring insurance premiums in these areas, they also can’t afford housing elsewhere.
The regulation of housing in Australia traditionally relies on well-informed buyers being responsible for managing the risks. But our new study found home buyers are often not aware of the long-term risks.
