Prices rise as Queensland takes the lead
Includes the potential impacts of forest fires, coastal erosion and coastal flooding.
“We have seen those impacts on the Gold Coast in recent years,” Colacino said.
“I am thinking about Burleigh and the significant impacts that there were up to Coolangatta,” he said.
“Obviously there are significant sand dredging costs to replenish those beaches there.
“We have seen these impacts as part of the natural character of these regions.
“The impact of climate change means greater severity of extreme weather events, storms and winds will increase those risks.
“The result of that will be an increase in insurance costs.
“In extreme cases, some properties could become uninsurable.”
Colacino said the table outweighs the rare risks of coastal homes collapsing into the ocean due to beach erosion.
“Examples could be river flooding, so people who live in canals on the Gold Coast and Sunshine Coast, for example, which is very common, could have water from the canals entering their properties.
“There could be problems with subsidence because the soils are soaked. It could simply be the impacts of strong winds that blow off parts of the buildings and create debris. “
Earlier this year, the federal government promised a $ 10 billion fund to reduce insurance premiums in North Queensland after an extensive review of the impacts of repeated cyclones.
At this time, only $ 2.6 million for the reinsurance scheme has been set aside in the federal budget.
In July 2021, the Queensland government launched a scheme whereby North Queensland councils could request money from a $ 10 million fund to cover rising insurance costs.
The Insurance Council of Australia found that in Townsville and Cairns, reducing flood risk through permanent mitigation measures could reduce insurance premiums by up to 21 percent.
In 2020, the insurance council sponsored a two-year study on the impacts of high winds on the Queensland coast, with six local governments and the Queensland Fire and Emergency Services.
It will report to the government in 2022.
The Australian Insurance Council has proposed new home designs to reduce the impacts of climate change.