Banks and insurers join scientists to tackle climate risk
Days after the insurance bill for Australia’s devastating bushfires, floods and hail storms climbed over $5 billion, Climate KIC announced an initiative to understand the physical risks of climate change.
Made up of scientists from the CSIRO Climate Science Centre and the Bureau of Meteorology to name a few, Climate KIC's Climate Measurement Standards Initiative is seeking to create a scientifically-backed common standard for insurance industry disclosures and the reporting of climate-related physical risks to Australian infrastructure.
Chief executive of Climate KIC, Christopher Lee said, “This will provide companies and regulators with a common understanding of the science and how model-based projections of climate variables can be integrated into physical risk scenario analysis.”
The insurance industry has a vested interest in improving the way climate risks are assessed given the incredibly high costs to its businesses.
The Insurance Council of Australia notes that insurers have already paid more than $2.85 billion for emergency accommodation, business interruption, repair and rebuilding work, replacement of motor vehicles and goods, services and settlements for the 2019/2020 summer alone.
With these figures in mind, it is clear why companies such as QBE, Suncorp, IAG, RACQ, NAB, Westpac, Commbank and HSBC have decided to support the initiative.
445,000 homes could be uninsurable in 30 years
According to a report by the University of New South Wales, more than 445,000 Australian homes will be uninsurable in just 30 years time. Increased extreme weather events, including bushfires and flooding will make it more difficult for financial providers to predict the risks and insure properties and infrastructure properly.
The Climate Measurements Standards Initiative aims to give insurers a way to more accurately predict future repair and replacement costs.
The future of home insurance
With insurers moving to understand the actual, physical risks of climate change, the future of home insurance is unclear. UNSW suggests that in the future bushfire insurance should be modelled more like medicare insurance.
Whether the industry will see a restructuring in the next five, ten or twenty years time remains to be seen. For now, if you are worried about being underinsured for bushfire damage, why not read our article on home insurance traps to look out for.
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Home Buildings Insurance
Get award-winning Home and Contents Insurance at a price you can afford from Budget Direct. Save a huge 15% ^ on your first year’s premium when you purchase a new combined Home Buildings Insurance policy online.
- Main events covered
Fire
Theft
Storm
FloodOptional Extra
- Monthly payments
cost extra
- Yes
- Underinsurance protection
- Optional ExtraUp To 25% Of Sum Insured
- New for old
replacment
- Yes
- General contents
- No
- Cash
- No
- Cd dvd and electronic files
- No
- Computer software hardware
- No
- Camera and accessories
- No
- Carpets
- No
- Antiques and valuables
- No
- Jewellery
- No
- Replacement of documents
- No
- Tools of trade
- No
- Contents while moving
- No
- Lock replacement
- No
- Temporary accommodation
- Up to 10% of sum insured, up to 12 months. Combined with temporary accommodation for pets.
- Debris removal
- Up to 10% of sum insured combined with demolition cost
- Demolition cost
- Up to 10% of sum insured combined with debris removal cost
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- No
- Buildings and structural improvements
- Yes
- Building materials
- Up to $1,000
- Landscaping
- No
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Home Buildings Insurance
Premier Care Residential
Save up to 25% when you purchase cover online. Westpac Premier Care Home & Contents Insurance covers your home and belongings in case of storms, floods, fire, theft and more. Mozo Experts Choice Winner in 2020.
- Main events covered
- Fire
- Theft
- Storm
- Flood
- Monthly payments
cost extra - No
- Underinsurance protection
- YesUp To 30% Of Building Sum Insured
- New for old
replacment - Yes
- General contents
- Yes
- Cash
- Up to $1,250
- Cd dvd and electronic files
- Yes
- Computer software hardware
- Computer software: Yes. Computer hardware: Yes.
- Camera and accessories
- Yes
- Carpets
- Yes
- Antiques and valuables
- Up to $20,000
- Jewellery
- Up to $5,000 per item, up to $20,000 in total
- Replacement of documents
- Up to $2,000
- Tools of trade
- Up to $3,000
- Contents while moving
- Up to 20% of sum insured
- Lock replacement
- Up to $2,000
- Temporary accommodation
- Up to 12 months, up to 10% of sum insured
- Debris removal
- Up to 10% of sum insured combined with demolition cost
- Demolition cost
- Up to 10% of sum insured combined with debris removal cost
- Accidental loss and damage
- Yes
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- Yes
- Buildings and structural improvements
- Yes
- Building materials
- Up to $2,000
- Landscaping
- Up to $10,000 for plants
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Westpac Premier Care Residential
Premier Care Residential
Save up to 25% when you purchase cover online. St. George Premier Care Home & Contents Insurance covers your home and belongings in case of storms, floods, fire, theft and more. Mozo Experts Choice Winner in 2020.
- Main events covered
- Fire
- Theft
- Storm
- Flood
- Monthly payments
cost extra - No
- Underinsurance protection
- YesUp To 30% Of Sum Insured
- New for old
replacment - Yes
- General contents
- Yes
- Cash
- Up to $1,250
- Cd dvd and electronic files
- Yes
- Computer software hardware
- Computer software: Up to $3,000. Computer hardware: Yes.
- Camera and accessories
- Yes
- Carpets
- Yes
- Antiques and valuables
- Up to $20,000
- Jewellery
- Up to $5,000 per item, up to $20,000 in total
- Replacement of documents
- Up to $2,000
- Tools of trade
- Up to $3,000
- Contents while moving
- Up to 20% of sum insured
- Lock replacement
- Up to $2,000
- Temporary accommodation
- Up to 12 months, up to 10% of sum insured
- Debris removal
- Up to 10% of sum insured combined with demolition cost
- Demolition cost
- Up to 10% of sum insured combined with debris removal cost
- Accidental loss and damage
- Yes
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- Yes
- Buildings and structural improvements
- Yes
- Building materials
- Up to $2,000
- Landscaping
- Up to $10,000 for plants
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about St.George Premier Care Residential
Home Insurance
Making sure your home insurance is about where you’re at right now could save you lots. Start a quote with Youi today and see what you could save.
- Main events covered
- Fire
- Theft
- Storm
- Flood
- Monthly payments
cost extra - Yes
- Underinsurance protection
- No
- New for old
replacment - No
- General contents
- No
- Cash
- No
- Cd dvd and electronic files
- No
- Computer software hardware
- No
- Camera and accessories
- No
- Carpets
- No
- Antiques and valuables
- No
- Jewellery
- No
- Replacement of documents
- No
- Tools of trade
- No
- Contents while moving
- No
- Lock replacement
- Up to $500
- Temporary accommodation
- Up to 12 months, up to 12% of sum insured
- Debris removal
- Up to 20% of sum insured combined with demolition and professional fee costs.
- Demolition cost
- Up to 20% of sum insured combined with debris removal and professional fee costs
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- No
- Buildings and structural improvements
- Yes
- Building materials
- Up to $1,000
- Landscaping
- No
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Youi Home Insurance
Home & Contents Insurance
Virgin Money Home & Contents Insurance, winner of the Exceptional Value Home & Contents Insurance award in 2020.
- Main events covered
- Fire
- Theft
- Storm
- FloodOptional Extra
- Monthly payments
cost extra - Yes
- Underinsurance protection
- Optional ExtraUp To 25% Of Sum Insured
- New for old
replacment - Yes
- General contents
- Yes
- Cash
- Up to $800
- Cd dvd and electronic files
- Up to $3,000 combined with computer software
- Computer software hardware
- Up to $3,000 combined with CDs/DVDs
- Camera and accessories
- Yes
- Carpets
- Yes
- Antiques and valuables
- Up to $5,000 per item for artwork, up to $12,000 in total, up to $2,000 for collections
- Jewellery
- Up to $1,000 per item, up to $5,000 in total
- Replacement of documents
- No
- Tools of trade
- Up to $2,000
- Contents while moving
- Up to 20% of sum insured
- Lock replacement
- Up to $1,000
- Temporary accommodation
- Up to 10% of sum insured, up to 12 months. Combined with temporary accommodation for pets.
- Debris removal
- Up to 10% of sum insured combined with demolition cost and emergency storage cost
- Demolition cost
- Up to 10% of sum insured combined with debris removal cost and emergency storage cost
- Accidental loss and damage
- Optional Extra
- Accidental breakage of glass
- Yes
- Lightning
- Yes
- Earthquake
- Yes
- Storm surge
- No
- Buildings and structural improvements
- Yes
- Building materials
- Up to $1,000
- Landscaping
- No
- Gates and fences
- Yes
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Virgin Money Home & Contents Insurance
*Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement on the provider's website for further information before making any decisions about an insurance product.
Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).
^See information about the Mozo Experts Choice Home Insurance Awards
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