Unaffordable Australian Flood Insurance

One of the key findings of our research is that insurance is the key strategy adopted by most strata buildings for adverse climate change impacts.

So, the availability, extent of cover and affordability of insurance cover is a crucial factor and that's become an increasing problem throughout Australia in recent times.

This article in Property Observer reveals that it's worse than many people my think.  Although the article focuses on free standing homes the problem extends to strata buildings when (and if) they can get flood insurance.

The article states that Queensland flood insurance offered by Allianz ranges from $8,200 to $19,000 per dwelling, that flood cover can cost from 7 to 17 times more than home insurance without it and 4 out of 5 domestic building insurance policies include flood cover.

And since the 2012 Federal Government recommendations do not make flood cover mandatory or contain premiums for the cover, it's likely the situation will continue to worsen for affected strata owners.