With Australians enduring intense climate-related disasters during the past five years, analysts and lawyers are warning that prospective homeowners and investors could be buying into a perfect storm.
Making buyers aware of the potential bushfire, flooding and coast erosion threats to property could be a compliance issue for governments, property lawyers, and the insurance industry.
A 30-year climate outlook exclusively commissioned by The Australian Conveyancer magazine exposes threats to thousands of properties in NSW and suggests owners will be impacted by land valuation, zoning restrictions and insurance premiums.
The Australian Conveyancer Magazine’s February edition unpacks the implications for owners, investors and the property industry in a 20-page spotlight report.
The digital magazine can be viewed here.
Scientific modelling from Groundsure’s ClimateIndex details the regions more affected by lightning strikes and bushfires in the next three decades; shows how some current flood zones will worsen; and why more beach-side properties will suffer severe erosion.
It says, the impact on safety, development planning, land values and compliance is real:
- It claims that 40 per cent of all properties in NSW are now at moderate to high risk of flooding.
- The risk of catastrophic loss, both financially and physically, will drive up insurance premiums.
The report also draws attention to the state’s experience of catastrophic events during the past five years:
- NSW’s so-called Black Summer bushfires of 2029-20 cost $4.9 billion.
- Insurers have paid our $13 billion in climate-related claims in NSW.
- The combined value of coastal properties exposed to coastal erosion damage is $25 billion.
Detailed mapping shows the extent of the risk but also provides relief to some property owners and investors.
- Some suburbs and land lots will see reductions in risk from the elements due to favourable weather forecasts.
- Some regions will see no change at all. But for many, the situation will worsen during the next 30 years.
The digital magazine can be viewed here:
Key facts:
- 40 per cent of all properties in NSW are now at moderate to high risk of flooding.
- The risk of catastrophic loss, both financially and physically, will drive up insurance premiums.
- NSW’s so-called Black Summer bushfires of 2029-20 cost $4.9 billion.
- Insurers have paid our $13 billion in climate-related claims in NSW.
- The combined value of coastal properties exposed to coastal erosion damage is $25 billion.
- Some suburbs and land lots will see reductions in risk from the elements due to favourable weather forecasts.
- Some regions will see no change at all. But for many, the situation will worsen during the next 30 years.
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