Labor pledges $1 billion to natural disaster fund

The federal government has committed $1 billion over five years to the national Disaster Ready Fund.

The main purpose of the Fund is to mitigate the risk of damage and loss from natural disasters, which according to Emergency Management Minister Murray Watt “come at a critical time”.

Australia’s eastern states continue to be battered by La Nina rain, with large swathes of New South Wales and Victoria once again under water.

“As communities across the country again face the challenges of worsening natural disasters, this government has delivered on its promise to focus disaster spending where it will have the greatest impact,” Murray said. Watt.

“By pledging $1 billion through the Disaster Ready Fund over the next five years as part of the 2022-23 budget, the Albanian government will reduce the physical, economic and psychological impacts of disasters on Australian communities. .”

The minister also noted that investing in disaster risk reduction could be a way to tackle the rising cost of insurance and the problem of underinsurance.

Theoretically, if the dwellings are less exposed to the risk of flooding (for example), then Home Insurance providers can start offering cheaper premiums to their customers.

At Mozo Insurance report 2022the research found that nearly two-thirds of Australians’ home insurance premiums had increased since July 2021, with 17% reporting significant increases.

But, perhaps most alarmingly, 43% of survey participants said they were underinsured, with a fifth suggesting an insurance payout wouldn’t cover the full cost of rebuilding. , repair or replacement of their home.

The Disaster Ready Fund will invest in infrastructure projects such as flood levees, diversion channels, levees, firebreaks, constructed wetlands and reefs in disaster-prone areas.

Not all insurance policies are created equal. Do you know if your home insurance policy covers your property against flood damage?

When you compare home insurance and home insurance With Mozo, you can see at a glance which major events are covered by each policy, including coverage for natural disasters, whether they offer underinsurance protection and more.