Business

4,500 Nelson real estate at risk of flooding and withdrawal of insurance

Read next: Nelson works to strengthen climate change measures

Based on the Nelson City Council’s river flood modeling, about 4,500 Nelson properties are in the once-in-a-century flood zone, which can result in loss of insurance. The council promptly notified affected homeowners of this scenario.

The story advised those who own homes as a financial investment in flood areas to understand that “climate risk is not currently incorporated into the value of their assets.”

When asked if the $ 44 million library that the council proposed to build next to the Maitai River could be at risk of withdrawal, the story is doing a specific analysis of the location. I said no.

But given that the proposed library was also in a flood-prone area, she said it was “likely.”

Flood problems are not limited to Nelson. By 2025, at least 10,000 homes in Auckland, Wellington, Christchurch and Dunedin will be uninsured, according to the story report. Wellington will be the first to lose affordable insurance in just 15 years, but Christchurch will be hit hardest.

read more: Insurance companies on why flood risk should be considered in coastal home insurance premiums

Correspondingly, vulnerable homeowners may pressure local governments to spend more public spending on defense-the solution the story warned.

“That doesn’t work,” the story said. “If that defense fails, it inevitably fails, but more assets and more people are doing harm.”

Instead, Story proposed a precautionary measure using a “climate lease” model to stop new buildings in dangerous locations. This lease imposes a time limit on the property, after which the usage right expires.

“The council … yes, it can be rebuilt there, but it’s a period we believe is safe to occupy, so we need to vacate the property within this period,” the story says. I did.

4,500 Nelson real estate at risk of flooding and withdrawal of insurance

Source link 4,500 Nelson real estate at risk of flooding and withdrawal of insurance

Back to top button