{"id":169869,"date":"2022-11-16T12:30:51","date_gmt":"2022-11-16T01:30:51","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=169869"},"modified":"2022-10-18T20:26:18","modified_gmt":"2022-10-18T09:26:18","slug":"australias-looming-triple-dip-la-nina-insurance-crisis","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/australias-looming-triple-dip-la-nina-insurance-crisis\/","title":{"rendered":"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis"},"content":{"rendered":"

Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.\"House<\/p>\n

 <\/p>\n

What\u2019s occurred with the floods in Victoria looks like an unsettling precursor for the summer ahead.<\/p>\n

I\u2019m incredibly concerned this year\u2019s La Ni\u00f1a will financially devastate a huge number of homeowners and investors who are substantially underinsured.<\/p>\n

The Bureau of Meteorology has declared that a La Ni\u00f1a event is underway for the third year.<\/p>\n

When a La Ni\u00f1a moves into the third year, it is called a \u2018triple dip\u2019.

<\/div><\/p>\n

That should be a huge cause for concern.<\/p>\n

The last time a triple dip La Ni\u00f1a occurred was more than two decades ago from 1998 until 2001.<\/p>\n

Because we\u2019ve already had two wet summers, dam catchments are up and water tables are high, so flood events this year will be more likely.<\/p>\n

We\u2019re also still recovering financially from the previous two years of flooding which resulted in billions of dollars of damage throughout the nation.<\/p>\n

Along with the loss of life and property, these events have exacerbated other elements that will make things difficult.<\/p>\n

There are three reasons why this year\u2019s flooding could be one of the most financially devastating in recent history.<\/p>\n

1. Rising construction costs<\/span><\/h2>\n

Rising construction costs throughout the past two years mean any insurance value assessments from 12 months ago could be redundant.<\/p>\n

Repairs to the previously flooded property have seen the demand for labour and materials continue to skyrocket.<\/p>\n

\"Construction<\/p>\n

If the heavy rains cause more widespread flooding again this year, expect to see our already strained construction industry put under further stress.<\/p>\n

The fallout will be dramatic because costs have already risen to new highs.<\/p>\n

For example, we\u2019ve seen the cost of timber rise in the past twelve months by about 21 per cent and steel by around 42 per cent.<\/p>\n

There\u2019s every chance that if La Ni\u00f1a wreaks havoc this year, construction costs will remain at their record highs well into 2023 and possibly beyond.<\/p>\n

2. Underinsurance<\/span><\/h2>\n

Australia\u2019s property owners are already substantially underinsured.<\/p>\n

In 2020, CANSTAR research concluded that 83% of Australians were underinsured.<\/p>\n

Then in 2021, the Australian Bureau of Statistics noted that 2.44 million Australian households\u00a0have no house and contents insurance \u2013 that\u2019s 23 per cent of all Australian homes!<\/p>\n

In reality, I believe over 90 per cent of properties in Australia are not carrying adequate insurance.<\/p>\n

Also, many residential owners don\u2019t carry out proper assessments of their property\u2019s replacement costs each year.<\/p>\n

Most just opt to add a little extra to last year\u2019s guesstimate come insurance renewal time.<\/p>\n

Worse still are those who rely solely on online calculators to help them assess their insurance values.<\/p>\n

These wildly inaccurate \u201ctools\u201d are causing major headaches for those who thought they were adequately insured.<\/p>\n

Most online calculators don\u2019t make any allowances for consultants\u2019 fees, demolition and forecast building cost inflation.<\/p>\n

In addition, they miss allowances for site works, retaining walls, mature landscaping and additional works that have been carried out over time.<\/p>\n

3. The rental crisis<\/span><\/h2>\n

Floods will have massive implications on construction programs, add continuous strain to the supply of building materials and increase upward pressure on construction costs.<\/p>\n

\"Rental<\/p>\n

This means people will be displaced for longer periods of time and will need alternative shelter.<\/p>\n

Unfortunately, this is occurring during a time of enormous rental stress across our capital cities and major regional centres.<\/p>\n

A big flood would only add more demand to the rental market while also removing a swathe of supply.<\/p>\n

You can see how that equation will cause the currently dire rental situation to become even worse.<\/p>\n

A final note...<\/span><\/h2>\n

I hate to be the bearer of bad news but watching the weather maps should concern every property owner.<\/p>\n

I suggest the best move people can make is to be financially storm-ready.<\/p>\n

Make sure your insurance is up to date and that it delivers comprehensive coverage.<\/p>\n

Most important of all is to confirm you have an updated insurance value estimate for your home that has been prepared by a qualified professional such as a quantity surveyor.<\/p>\n

This is the only way to guarantee you have adequate coverage as a safety net against the weather.<\/p>\n\r\n\r\n\r\n

<\/div>\r\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.   What\u2019s occurred with the floods in Victoria looks like an unsettling precursor for the summer ahead. I\u2019m incredibly concerned this year\u2019s La Ni\u00f1a will financially devastate a huge number of homeowners and investors who are…<\/p>\n","protected":false},"author":122,"featured_media":169661,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[54],"tags":[],"class_list":["post-169869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-property-updates"],"acf":[],"yoast_head":"\nAustralia\u2019s looming triple-dip La Ni\u00f1a insurance crisis<\/title>\n<meta name=\"description\" content=\"Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.   What\u2019s occurred with the floods...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis\" \/>\n<meta property=\"og:description\" content=\"Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.   What\u2019s occurred with the floods...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/\" \/>\n<meta property=\"og:site_name\" content=\"Property Update\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-16T01:30:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-18T09:26:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mike Mortlock\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/propertyupdate.com.au\/australias-looming-triple-dip-la-nina-insurance-crisis\/\",\"url\":\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/\",\"name\":\"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis\",\"isPartOf\":{\"@id\":\"https:\/\/propertyupdate.com.au\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg\",\"datePublished\":\"2022-11-16T01:30:51+00:00\",\"dateModified\":\"2022-10-18T09:26:18+00:00\",\"author\":{\"@id\":\"https:\/\/propertyupdate.com.au\/#\/schema\/person\/e862c1fed53e0d8836841ef5386e53d0\"},\"description\":\"Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.   What\u2019s occurred with the floods...\",\"breadcrumb\":{\"@id\":\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#primaryimage\",\"url\":\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg\",\"contentUrl\":\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg\",\"width\":2000,\"height\":1333,\"caption\":\"Home Insurance\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/propertyupdate.com.au\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/propertyupdate.com.au\/#website\",\"url\":\"https:\/\/propertyupdate.com.au\/\",\"name\":\"Property Update\",\"description\":\"Real Estate Investing Advice & Strategies From Experts You Can Trust\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/propertyupdate.com.au\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/propertyupdate.com.au\/#\/schema\/person\/e862c1fed53e0d8836841ef5386e53d0\",\"name\":\"Mike Mortlock\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/propertyupdate.com.au\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/propertyupdate.com.au\/wp-content\/uploads\/2018\/05\/cropped-mike-for-new-web-colour-96x96.jpg\",\"contentUrl\":\"https:\/\/propertyupdate.com.au\/wp-content\/uploads\/2018\/05\/cropped-mike-for-new-web-colour-96x96.jpg\",\"caption\":\"Mike Mortlock\"},\"description\":\"Mike Mortlock is a Tax Depreciation expert, Quantity Surveyor and Managing Director of MCG Quantity Surveyors. He is a regular property commentator having been featured in the Financial Review and Sky Business. MCG Specialise in Tax Depreciation Schedules and Construction Cost Estimating for investors. You can visit them at www.mcgqs.com.au\",\"url\":\"https:\/\/propertyupdate.com.au\/author\/mike-mortlock\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis","description":"Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.   What\u2019s occurred with the floods...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/","og_locale":"en_US","og_type":"article","og_title":"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis","og_description":"Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.   What\u2019s occurred with the floods...","og_url":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/","og_site_name":"Property Update","article_published_time":"2022-11-16T01:30:51+00:00","article_modified_time":"2022-10-18T09:26:18+00:00","og_image":[{"width":2000,"height":1333,"url":"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg","type":"image\/jpeg"}],"author":"Mike Mortlock","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/propertyupdate.com.au\/australias-looming-triple-dip-la-nina-insurance-crisis\/","url":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/","name":"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis","isPartOf":{"@id":"https:\/\/propertyupdate.com.au\/#website"},"primaryImageOfPage":{"@id":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#primaryimage"},"image":{"@id":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#primaryimage"},"thumbnailUrl":"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg","datePublished":"2022-11-16T01:30:51+00:00","dateModified":"2022-10-18T09:26:18+00:00","author":{"@id":"https:\/\/propertyupdate.com.au\/#\/schema\/person\/e862c1fed53e0d8836841ef5386e53d0"},"description":"Australia is on the verge of a devastating insurance crisis due to this summer\u2019s triple-dip La Ni\u00f1a weather event.   What\u2019s occurred with the floods...","breadcrumb":{"@id":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#primaryimage","url":"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg","contentUrl":"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/10\/home-insurance.jpg","width":2000,"height":1333,"caption":"Home Insurance"},{"@type":"BreadcrumbList","@id":"https:\/\/thepropertytribune.com.au\/business-industry\/does-australia-have-a-looming-triple-dip-la-nina-insurance-crisis\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/propertyupdate.com.au\/"},{"@type":"ListItem","position":2,"name":"Australia\u2019s looming triple-dip La Ni\u00f1a insurance crisis"}]},{"@type":"WebSite","@id":"https:\/\/propertyupdate.com.au\/#website","url":"https:\/\/propertyupdate.com.au\/","name":"Property Update","description":"Real Estate Investing Advice & Strategies From Experts You Can Trust","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/propertyupdate.com.au\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/propertyupdate.com.au\/#\/schema\/person\/e862c1fed53e0d8836841ef5386e53d0","name":"Mike Mortlock","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/propertyupdate.com.au\/#\/schema\/person\/image\/","url":"https:\/\/propertyupdate.com.au\/wp-content\/uploads\/2018\/05\/cropped-mike-for-new-web-colour-96x96.jpg","contentUrl":"https:\/\/propertyupdate.com.au\/wp-content\/uploads\/2018\/05\/cropped-mike-for-new-web-colour-96x96.jpg","caption":"Mike Mortlock"},"description":"Mike Mortlock is a Tax Depreciation expert, Quantity Surveyor and Managing Director of MCG Quantity Surveyors. He is a regular property commentator having been featured in the Financial Review and Sky Business. MCG Specialise in Tax Depreciation Schedules and Construction Cost Estimating for investors. You can visit them at www.mcgqs.com.au","url":"https:\/\/propertyupdate.com.au\/author\/mike-mortlock\/"}]}},"_links":{"self":[{"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/posts\/169869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/users\/122"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/comments?post=169869"}],"version-history":[{"count":0,"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/posts\/169869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/media\/169661"}],"wp:attachment":[{"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/media?parent=169869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/categories?post=169869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyupdate.com.au\/wp-json\/wp\/v2\/tags?post=169869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}