What insurance retreat means for home-owners

In recent weeks we’ve seen AA Insurance publicly acknowledge it has stopped writing new home insurance policies in Westport, Woodend in North Canterbury and in Blenheim to avoid taking on more flood and quake risk in those towns. The NZ Herald’s Front Page Editor Chelsea Daniels asked me to come on to her show to talk about what insurance retreat means for homeowners and why home buyers need to do their own research about flood risk and insurance risk, in the absence of a managed retreat organized and underwritten by central and local Government.“A mass delusion is not a solution.”We talked about how and why:* Insurers are retreating from high-risk areas due to climate change.* Homeowners face higher premiums and potential uninsurability.* Uninsurable towns become unbankable, affecting property values.* People often discover insurance issues at the last minute.* The government may need to step in as an insurer of last resort.* Buyers must conduct thorough research before purchasing homes.* Education on climate risks is crucial for potential homeowners.* Banks and insurers are lagging in risk assessment related to climate change.* The frequency of severe weather events is increasing due to climate change.* Responsibility lies with buyers to be informed and cautious.Here’s the various points in the conversation:* 00:00 The Impact of Climate Change on Insurance* 03:04 The Consequences of Uninsurability* 05:53 The Role of Government and Community* 09:06 The Future of Home Insurance* 11:58 Navigating the Housing Market* 15:08 The Responsibility of Buyers* 18:06 The Need for Education and Awareness* 20:59 The Role of Banks and Insurers* 24:03 Addressing Climate Change in Housing PolicyHere’s the resulting article on NZ Herald and the Youtube version is below.Ka kite anoBernard This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit thekaka.substack.com/subscribe