PLEA Network

30 May 2016, The Guardian, Homeowners kept in dark about climate change risk to houses, says report. Climate Institute says risk data held by regulators, state and local governments, insurers and banks, but homebuyers and developers do not have access to it. The risk that houses in some areas of Australia are likely to become uninsurable, dilapidated and uninhabitable due to climate change is kept hidden from those building and buying property along Australia’s coasts and in bushfire zones, a Climate Institute report says. The report says there is untapped and unshared data held by regulators, state and local governments, insurers and banks on the level of risk, but that most homebuyers and developers are not told about the data and do not have access to it. The full scale of risk may only be recognised through disaster or damage, or when insurance premiums become unaffordable Climate Institute report. “Even when public authorities, financial institutions and other stakeholders possess information about current and future risk levels, they are sometimes unwilling, and sometimes unable, to share it with all affected parties,” the report released on Monday says. “Thus, foreseeable risks are allowed to perpetuate, and even to grow via new housing builds. The full scale of the risk may only be recognised either through disaster or damage, or when insurance premiums become unaffordable. Any of these events can in turn affect housing values.” The economic costs are high and could ultimately represent a real risk to the financial sector itself, the report says. While insurers, regulators and governments have started to recognise this risk, banks who approve the mortgages for at-risk properties have not yet begun working towards a solution. For example, the report says, banks could integrate the impact of climate into their risk assessment processes, work with other stakeholders in the public, private and civil society sectors to research and develop ways to minimise climate impact risk to housing, and address losses that will occur in an equitable way. Read More here