Accuracy of Flood-Risk Ratings and Home Insurance Premium Hikes
Most insurers use the same resource to measure flood risk, potentially reducing price competition.
A report by the Australia Institute found that 533,229 homes in Australia were underinsured, and 344,523 were not insured at all, with affordability being the main issue in around half of these cases.
The average uninsured homeowner owed over $283,000 on their mortgage, while underinsured homeowners owed over $373,000.
Without insurance, regaining economic security would be a very long haul.
Author's summary: Insurers' flood-risk ratings may lack competition.