Shepparton, a regional city in Victoria, Australia, has emerged as a focal point in the discussion around climate change and its implications for home ownership. The city ranks at the top of the list for areas at high risk of climate-related hazards, particularly following the severe floods that struck its suburbs in 2022. Of the worst affected was Furphy Avenue, where at least half a dozen houses have been razed to the ground as a result of flood devastation. The aftermath has left many other properties for sale, raising concerns about the future of housing in this vulnerable region.
In response, the Greater Shepparton City Council has been getting ahead of the curve on these risks. Advice up front The flood modeling developed for the Goulburn Broken Catchment Management Authority (GBCMA) is central to the process. As a result, it finds the most dangerous areas in Shepparton. In fact, the city’s central business district (CBD) is one of the most, if not the most, climate change uninsurable CBDs in the country. Unfortunately, the council has little to no support while taking on great risk in defending its residents. Those catastrophic floods impacted established suburbs – particularly older, multicultural suburbs like those along Furphy Avenue. This scenario demonstrates the growing importance of successful climate adaptation solutions.
Flooding and Its Impact
For the second time ever, homes across Shepparton flooded in 2022, including many houses that had withstood the 1974 record-breaking floods. Residents like Geoff Woodhouse recounted their experiences, stating, “It kept coming and it kept coming … I didn’t think that it could ever come that high.” His wife, Vicki Woodhouse, agreed with him, saying, “It just wasn’t logical. The recent flooding has resulted in nearly all the homes on Furphy Avenue being bought out or knocked down. This paints the picture of the tumultuous circumstance that so many families are going through.
The floods have ignited debates across all levels of government about how the city should plan for urban growth in Shepparton. Joel Leister, the city’s floodplain manager, explained that every new development needs to be built above the 1-in-100-year flood elevation. He stressed the need to think proactively about the potential effects of climate change. This collaborative effort is taking the first steps to mitigate risks associated with the impacts of climate change. Today, Shepparton is regarded as Australia’s “canary in the coal mine.”
As the city grapples with its vulnerability to flooding, areas such as Kialla have been identified as having a high percentage of properties deemed “high risk.” About 79% of residences in Kialla are within this group. This raises alarm not only for future development, but for anyone’s future ability to get insurance.
Insurance Challenges
The changing insurance landscape in Shepparton has becoming the biggest issue for residents and city leaders as well. Even after homeowners proactively mitigate climate-related risks, affordable insurance is increasingly out of reach for many homeowners. Shepparton Mayor Sali has been willing to go to war with the insurers on fournishing lost vehicles. She took them to task for disregarding the city’s proactive mitigation and adaptation work.
She slammed it as the worst kind of lazy policy-making. In doing so, they take advantage of our citizens most vulnerable to those tricks, who do not have the wherewithal to call out and beat back insurance companies. Mayor Sali believes that instead of generating revenue from reports that do not reflect local realities, insurers should take a closer look at what cities like Shepparton have implemented to combat climate risks.
The Insurance Council of Australia (ICA) provides assurances that insurance remains available. Through this program, even the most risk-exposed corners of the country are able to obtain coverage. A spokesperson from the ICA stated, “Insurance remains available even in the most risk-exposed regions of the country,” but residents remain skeptical about the accessibility and affordability of coverage.
A Call for Action
And as climate change accelerates, researchers have cautioned that some places are likely to enter a death spiral of plummeting property values and unlivability. Karl Mallon, CEO of Climate Valuation, expressed serious concerns stating, “We don’t use the concept of climate ghetto lightly. It’s a very serious warning.” This highlights the need for immediate action to ensure that communities like Shepparton do not become permanently marginalized due to climate risks.
The Greater Shepparton City Council is still leading the way, implementing protective measures for resident’s health and property. Mayor Sali wanted to make sure we knew of their commitment. Climate change is a part of our planning and we’re trying to get ahead of the curve. There is an urgent call for collaboration among various stakeholders to address the complexities surrounding climate adaptation and insurance.
