Why Flood Insurance ?
Why Flood Insurance ?

Insurance: Flood insurance of 30,000 shows which areas should not be built for housing
Thousands of people are watching their homes sink under the rising brown waves in eastern NSW.


Seeing a living property submerged in floodwaters is devastating for many, but doubly so for those who do not know how they can even change the needs of modern life.
Many people are illiterate because their insurers do not provide flood protection, or it is prohibitively expensive with residential premiums of up to $ 30,000 per year.


Andrew Hall, Chief Executive Officer of the Insurance Council of Australia, admitted that "if you live in a high-risk area, your entire house could be flooded on a regular basis. Yes, that's what you have to pay." RN for breakfast
To play or pause, disable m, find left and right arrows, up and down arrows on the block. Listening time: 5 minutes 27 seconds Insurers promise that 5 meters are affected by flood Download 5 MB
This may not be fair, but it serves as an insurance in the market economy.


Unlike public health insurance through Medicare, everyone contributes in their own way through taxation and then receives the same coverage regardless of their health risks, such as pre-existing conditions, property insurance altogether. Is a personal matter.
Insurance operators are satisfied with calculating historical claims, hazardous seed floods and busfires, weather information, crime data, and a risk assessment for each property for insurance.
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To use the simplest example, if your home floods every five years and the average damage ranges from 000 to 150,000, the insurer will have to pay a fee of $ 30,000 per year to cover that risk. .
Reducing premiums below that amount means that households with property at risk of flooding will pay higher premiums to subsidize their insurance.
In a competitive, private market, any insurer doing this will quickly lose business from low-risk customers and get entangled with high-risk customers, whose premiums will have to increase even more.
In other words, the only way to get cheap premiums for high-risk areas - which are prone to floods, fires, or storms - is for the government to provide social home insurance or force private companies to do so.
'A certain insanity' is going on
A $ 30,000 annual insurance bill tells us that we do not need individual home and contents insurance, but rather that many homes should not be built, or have not yet been built to suit its location. .

development in flood-affected areas, flood-affected areas for more than 50 years."
It is not just the insurance industry, this book is distracting or talking.
Chez Keys, a former deputy commissioner of state emergency services and a planner, expressed a similar sentiment to the ABC about the progress of development around the Hawkesbury-Nepal basin.

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Currently, 70,000 residents are in the grip of floods, and the state government plans to move 130,000 people to the area by 2050.
"It's a really fun idea," Professor James Pitak, a water expert at ANU's climate change agency, told ABC News.

Professor Pitak argued that flood-affected areas should be set aside for low-level use such as recreation, not housing construction. ()
ABC News: Brendan Esposito
) Buyer must order, be careful
In an ideal world, flood-affected areas would be completely blocked from development.
But in a city where the price of a regular house is already over $ 1 million, it is almost inevitable that low- and middle-income people will find a place to live. .
Of course, the NSW Government's advice to the congregations in this Flood Development Guide is misunderstood in favor of more development, not less.

It is up to local governments to determine what development is appropriate for the flood risk of a particular region.
However, one problem is that local governments are dependent on asset ratios for their revenue. Restoring land from agriculture to residential or commercial use increases its value and the annual rate at which they can collect it.
 Another thing is that property developers are still coming from many circles.

In short, most of the pressure is directed towards cultivating flood-hit lands, instead leaving it to low-risk uses such as natural reserves, parks, and agriculture.

Homes in designated flood-affected areas should be designed to minimize risk such as high minimum floor heights.

However, again, the necessary mitigation measures are based on the most common flood events, the "Flood Planning Stages" (FPL), which are not currently experiencing severe floods of the NSW type.

If some climate change models prove to be accurate, the most common type is flooding.

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At the very least, you can remind future residents of any flood risk.

But this is not guaranteed.

Planning certificates issued by the local government should ascertain that the property is subject to flood planning restrictions, but not to mention that property subject to FPL may still be subject to flooding during low flood events.

Therefore, there may be thousands of residents who are not fully aware of any flood risk, unless the event of unplanned flooding and an unusually large flood caters to them, or buy a premium unless They do not know whether they can insure their home or not, because the insurer knows the unknown risk.