By Tabish Ahmad, research scientist
(Australian Prime Minister’s Youngest Distinguished Global Talent Awardee)
TODAY, climate change is impacting all our lives and with many regions across the world experiencing back-to-back flooding, bush fires and catastrophic storms, the frequency of such devastating weather is on the rise.
The harsh reality today is that most areas face some form of climate risk.
In 2022, as Australia endured another year of unfathomable bushfires and flood, Shepparton experienced one of its worst floods on record while a ferocious hailstorm destroyed over 1,000ha of fruit, wheat and tomatoes from Tatura to Bunbartha just before Christmas.
With the Climate Council of Australia reiterating its warning of intensifying and extreme weather events, the picture for homebuyers in high-risk locations is grim.
It is essential that new homebuyers now research the possible effect of climate hazard on the market value of their home while also factoring in the steep rise in insurance premiums which are predicted to rise as high as 70 percent in high-risk locations.
With the growing potential for extreme weather events likely to impact properties with the one-two punch of rising insurance premiums and falling property values, below is a short list of factors to keep in mind when buying a home or thinking about climate-proofing your property:
Is the home at risk of bushfire, near low-lying coastal areas or otherwise at risk of flood?
Are risks disclosed in planning documents?
Are flood maps or other risk studies available from the local council?
If there are risks, has the property been designed and built to withstand those risks?
Check the property’s risk profile with an insurance company and consider the affordability of insuring the home in years to come
Check sewer maps to see if the property is exposed to risk through inundation of drainage systems in the event of deluge
Consider the elevation of the property, heavier rainfall will continue to cause flooding and homes known to be at risk may be denied insurance cover and lenders may then refuse to provide a mortgage.
