Flood-prone Tweed, Byron, Lismore could be uninsurable by 2030

New data has revealed the heartache Far North Coast residents will face over insurance as natural disasters increase in severity. Are you affected?

New data has revealed the electorates of Richmond and Page, which encompass the flood-prone town centres of Tweed, Lismore, Grafton as well as Byron and Ballina could be virtually uninsurable by 2030.

The new report titled ‘Uninsurable Nation’ released by the Climate Council on Tuesday, reveals that over 30,000 properties on the Northern Rivers are at high-risk to increasingly ferocious and frequent natural disasters.

The data also reveals that another 67,000 properties are currently at medium-risk.

It puts the Northern Rivers into code-red territory as insurance becomes unaffordable and unattainable following a devastating flood catastrophe in February and March this year.

“Climate change is creating an insurability crisis in Australia,” Climate Council CEO Amanda Mckenzie said.

Climate Council CEO Amanda McKenzie.Picture: Mark Brake.

“Choices have consequences and the government knew if they failed to act extreme weather would get worse, that's the choice they made and communities weren’t prepared for it”.

The Richmond electorate, which covers Tweed Heads, Byron and Ballina is the second most at-risk electorate in Australia to uninsurability, while the Page electorate, home to Lismore and Grafton, is ninth.

The report also shows that during the floods in 2022, 6,000 homes were affected in Ballina following a 1.8-metre king tide in late March.

Most residents of the Northern Rivers don’t need these statistics to tell them an insurance crisis is looming, because it has already hit the flood-prone region.

Over 45,000 homes in the Page electorate are at high or medium-risk to natural disasters Picture: Nicholas Rupolo.

It was revealed after the natural disaster that rocked the region in February and March that a large number of business and homeowners in Lismore had no flood insurance.

Oscar Bakos was quoted more than $30,000 a year for his dentistry on Lismore’s Uralba Street after the 2017 flood.

“We’ve been priced out of insurance,” he said.

“Seven years ago our rep said we can’t reinsure for flood but I’ll look after you if anything happens, which was bull****.

“We changed insurers but no insurer would give us any amount of cover.”

The struggles over the last few years has brought into sharp focus the idea of expanding the federal government’s insurance guarantee scheme established for North Queensland residents affected by cyclones.

Under the policy, the federal government has a $10 billion pool that could underwrite insurance costs for residents who can’t afford it.

Byron Mayor Michael Lyon and Tweed Shire Mayor Chris Cherry who are both leaders in the high-risk electorate of Richmond say government has to rethink their role in financial support for disaster-prone areas.

Mr Lyon encourages the government to focus on mitigation measures rather than funnel billions into disaster recovery policies.

Byron Shire Council Mayor Michael Lyon wants to see flood mitigation funding take priority Picture: Tessa Flemming.

“If they were to focus on that (insurance guarantee) then we would be a part of it but whether it's the best approach I don't know because then you aren’t dealing with resilience you are dealing with funding for recovery,” he said.

“I’m more interested in coming up with plans to make our premises more flood proof so they can withstand these natural disaster events”.

Mayor Cherry supports the government insurance guarantee and said that Tweed council building faced the same problem, revealing they can’t access flood insurance for their council chambers.

“It’s so important to change our thinking, we need to move around so we spend our money at the front end of the equation,” she said.

Tweed Shire Council Mayor, Chris Cherry. Picture: Matt Roberts.

“Out of flood zone, out of the area out of flood plains and up onto higher ground.

“We are calling on the federal government for money allocated to voluntary house purchases, raising houses and land swap programs - that’s the only way we can truly combat this”.

The Tweed Mayor also highlighted the importance of government investing in land swaps after her council confirmed a South Murwillumbah land swap would occur in the coming months.

Lismore City Council have also confirmed a planned retreat from flood plains will happen along with house raising projects.

“The reason people haven’t been able to move out of flood level is because people have nowhere to go to,” she said.

“People won’t be able to move so we have to provide the option for them now, people are ready to make that change.”