Banks, property owners, insurers and governments are all being urged to do more to mitigate risk from climate change or face “significant and increasing financial losses.”
The warning has been made in a report from Australian-based Climate Institute called ‘There Goes the Neighbourhood’ which highlights the large number of properties that are exposed to risks.
“People continue to buy homes that continue to be built and sold in areas that may be at more risk than they realize,” said institute CEO John Connor. “Limited sharing of information possessed by public authorities, financial institutions and other stakeholders means buyers aren’t always adequately informed, nor is relevant policy and decision-making.”
The report says that while mortgage lenders usually require proof of insurance when a home is purchased, this is not always monitored in later years, leaving homes under-insured as risk increases.
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