The coming insurance crunch !

The debate on global warming has not been lost on the insurance industry. Weather severity will impact on claims and the industry is now having a long, hard look at what it proposes to offer in the future - and at what price !
The pundits predict that we can expect everything from Tsunamis to storm surges to impact on coastal communities. The only thing uncertain is how far inland they will penetrate - and how long before it is likely to happen.
It is almost certain that the insurance industry will opt for safety and withdraw cover for certain events. Future policies may not provide protection from flooding caused by Tsunamis or storm surges, nor roof damage from hail or cyclonic winds. In effect, insurance may retreat to protection from fire and burglary loss in areas expected to be affected by global warming.
At the same time councils will be under pressure from residents of coastal suburbs to provide protection from coming events. There will be demand for beach erosion to be stabilized by rock barriers, particularly where high rise is involved and huge amounts of money is invested in towering home units. As a result, rates are sure to rise substantially in seaside suburbs.
The other uncertainty is how buyers will react. We all love to live near a beach and enjoy the temperate climate offered by proximity to the sea. For that reason, the nearer to the water the higher price of property, but global warming is introducing a new factor. Somewhere later during this century many of those seaside areas may be untenable - and some may be under water. The question is - Will people now turn their back on seaside living ? Or will they pin their hopes on barrier control of rising waters and the chance that the worst of global warming may not happen ?
Few would expect to see the bottom drop out of home prices in affected areas, but it is a certainty that there will be changes in insurance policies and that prices for both insurance and council protection will rise.
Just as rising fuel prices did not drive cars off the road, rising costs will not stop people wanting to live in desirable suburbs. It seems to be a fact of life that we refuse to change our habits - even when events hit us in the hip pocket !