New data has revealed the majority of Australians (68%) lived in local government areas affected by severe natural disasters, mostly floods, in 2022, according to Treasury’s analysis.
The Treasury claimed that most of the disaster declarations last year were due to wet weather and floods across the east coast, wiping approximately $5 billion from the country’s economy, with most of the costs coming from lost activity in mining, agriculture, retail, and construction. The floods also worsened inflation by pushing up the prices of fruits and vegetables.
Australia’s most devastating flood in 2022
Australia faced one flood after another in 2022, but the most notable was the Eastern Australian flood that occurred from late February to March. These floods were deemed the costliest flood in Australia and one of last year’s largest event losses outside the US. The Eastern Australian floods generated US$4.7 billion in industry loss, according to the CRESTA Industry Loss Index (CLIX).
The Insurance Council of Australia (ICA) estimates that 23 percent of Australian households do not have building or contents insurance, meaning that approximately 1.8 million residential households are not protected. While some may underinsure their property on purpose, for many others the shortfall is unintentional. Other factors include failing to take into account increased building costs and not adjusting Sum Insured value following major renovations. Sometimes underinsurance results from people choosing a lower Sum Insured value to reduce their insurance premium.
With thousands of homes damaged or destroyed by extreme weather and natural disasters each year, it is a timely reminder for Australians to take measures to protect themselves and their most important asset.
DSH Insurance advises to think about the types of events that could affect you and the likelihood of these occurring and then plan and act accordingly. Also, please review your building policy to ensure your Sum Insured covers rebuild costs, incorporating increasing construction costs and building standards.
Did you know, DSH Insurance also offers Caravan insurance with great offering and additional benefits?
- East coast flooding saw majority of Australians covered by natural disaster declaration in 2022 - ABC News
- Catastrophic event in Queensland and NSW deemed Australia's costliest flood | Insurance Business Australia (insurancebusinessmag.com)
- Australian flood tops 2022 insurance losses outside the US | Insurance Business Australia (insurancebusinessmag.com)