As Australians, we’re no strangers to the whims of Mother Nature. From scorching bushfires to devastating floods, our land of sweeping plains can sometimes feel like a battleground against the elements. Extreme weather is part of our national story—but lately, it seems to be hitting closer to home for more of us.
For Chay Khamsone, a 44-year-old mum-of-two, that battle has become all too personal. In just five years, her small town has been struck by several disasters. Now, Chay is facing a different kind of challenge: the struggle to find affordable insurance for her family home. It’s a difficult, frustrating reality for many in communities increasingly vulnerable to climate-related disasters.
And she’s far from alone. A new analysis from the Climate Council reveals over 2 million properties nationwide are now difficult to insure because of the rising risk of extreme weather. Alarmingly, more than 650,000 of these properties are classified as high-risk, with another 1.55 million facing moderate risk. It’s a sobering snapshot of how climate change isn’t a distant concept—it’s showing up on insurance bills and at our front doors.
The town of Pappinbarra, about an hour inland from Port Macquarie on the NSW Mid North Coast where Chay resides, is emblematic of the broader challenge. Ravaged by bushfires in 2019 and floods in 2021, the community is still reeling from the aftermath. ‘We’re really in the thick of this climate whiplash feeling,’ Chay told Yahoo News. ‘It’s just really disruptive and really expensive.’ The local council’s ongoing cleanup efforts from the 2021 floods are a testament to the long road to recovery that lies ahead.
Despite the challenges, Chay is determined to stay put and hopes her children will continue to call the area home. However, her pride in her children’s interest in joining the bushfire brigade is tinged with fear. ‘I’m really proud of them wanting to do that, but I also would feel worried that we’re sending them into unfightable fires in the future,’ she expressed, voicing a concern shared by many volunteer firefighters.
The Climate Council’s report, titled ‘At the Front Door,’ paints a grim picture, identifying 86 suburbs as ‘critical climate risk zones’. In these areas, up to 100 per cent of properties are classified as high-risk. The report is a wake-up call, bringing the abstract concept of global warming into the tangible reality of Australian households.
Nicki Hutley, the Climate Council’s chief economist, emphasises that the crisis is now ‘literally at the doorstep of Australian households.’ With insurance bills skyrocketing in the wake of repeated disasters, it’s clear that we cannot simply insure our way out of this predicament. Karl Mallon, an insurance industry expert and founder of Climate Valuation, echoes this sentiment, urging governments to provide clear plans for community safety and disaster mitigation.
The Bureau of Meteorology’s data shows that Australian temperatures have risen by more than 1.5 degrees since 1910, with the trend expected to worsen due to ongoing fossil fuel pollution. This leads to more frequent and severe weather events, putting communities like Chay’s at even greater risk.
As the election looms, Chay’s plea for political action on climate change is a clarion call for all Australians. ‘As a firefighter, I would feel like Australians have my back if they vote for a safer climate,’ she says. Her message is clear: climate change must remain a priority on the political agenda, and it’s up to the electorate to demand action.
As Chay’s story shows, the growing risks of extreme weather are no longer distant concerns but challenges arriving at the doorsteps of everyday Australians.
How do you think communities and governments should respond to these increasing risks? Have rising insurance costs or natural disasters affected your family’s plans or sense of security? Feel free to share your thoughts in the comments below.
Also read: Australian Super member says delays in processing his insurance claim almost left him homeless
Home insurance has either become unaffordable or unavailable at any price point to a lot of Australians. Insurance companies that offer the lowest premiums and win awards for offering the best value cover all refuse to insure homes in many postcodes. They don’t deserve their awards and the companies that issue them are committing fraud.
There is no easy solution because IMO things will get worse as the climate becomes more erratic and natural disasters increase. Ultimately it comes down to governments regulating the industry and subsidizing where necessary to keep premiums affordable but it will not be easy to do equitably and may never happen.