Bushfire, floods and cyclones are some of the most destructive climate related disasters for Australia. They can create enormous amounts of damage that leave residents in cycles of buildings, disaster and re-building or repairing. And current insurance policies aren’t enough. That’s the assessment of the Australian Housing and Urban Research Institute, which says that with the increase in climate change, the frequency of these disasters increases as well, and the cycle continues.
Time and time again, community members are left to sort out the damage and often rebuild homes altogether. For disaster related responses, most homeowners are reliant on insurance policies to help with the costs.
AHURI found that one in 25 Australian homes is at a risk of becoming uninsured by 2030 as insurance premiums for protecting against fires and flood-stricken areas are often more expensive and unaffordable to those in the most climate risk areas.
This poses a threat to people who live in high-risk areas.
The institute led research that included a literature review, an online survey and an examination of seven disaster case studies throughout Western Australia, New South Wales, Queensland and Victoria to look for a solution to the increasing problem of underinsurance and climate related disasters.
The research identified five areas of policy development for an upstream approach tackling housing resilience and then, inevitably, recovery.
The five areas are proactive housing crisis management and prevention, post-disaster housing solutions and recovery, local empowerment and community-led recovery, insurance reform and financial support, and government coordination and long-term resilience.
Among these five areas, insurance and “build back better” policies are at the forefront. Build better policies that focus on building resilient houses after floods and fires so that the next disaster will not be as detrimental to the home. For fires, homes would be built with fire resilient materials and flood risk homes would be built on elevated infrastructure.
However, the institute found that relying on a market-based initiative to support these more sustainable housing models is often unsustainable.
The best way to solve this was through financial support and government coordination with the insurance companies. One initiative would be a federal insurance scheme for residents who can’t afford premiums, according to the report.
Another aspect of housing related resilience includes proactive housing crisis management and prevention. For this, the organisation called on “forward-thinking” measures such as land use modelling, risk planning and construction standards to reduce risks before they happen.
The institute said the initiatives should include other vulnerable groups, such as renters, community housing dwellers, and people at high risk of homelessness.
In the short term, housing initiatives following a disaster need to be temporary, such as holiday parks, motels and hotels, but need to still foster community connection to maintain social resilience within disaster ridden communities, the report found.
At the same time, temporary housing needs to be effective, timely and equitable, according to the institute. For this, planning and reviews are essential as an upstream approach.
With short term sustainable housing and long term rebuilding approaches, the institute said future disaster damage can be mitigated.