BRISBANE, August 2022 — Victims of recent floods in Queensland and New South Wales will not be able to renew house insurance policies and are instead being offered discounted tiny homes.
Major insurers are refusing to cover properties in flood-prone areas arguing that the increased risks of natural disasters make insurance unviable in some parts of the country.
While claims are currently being processed in the normal way, policyholders are being encouraged to use insurance payments to relocate or purchase a mobile, tiny home that can be easily moved to avoid disasters.
Insurers are offering discounts of up to 20 per cent on a range of tiny homes to those whose policies will not be renewed.
The Insurance Council of Australia said the industry was at the frontline when it came to climate change and extreme weather, and that continuing to sell policies for properties that were likely to flood was “simply bad business”.
“We’ve been calling on the Australian government to boost investment in stronger homes and the local infrastructure to make communities more resilient, but this hasn’t happened.
“Tiny homes are a way of improving community resilience without leaving people homeless. It’s to think about becoming a little nomadic.”