With recent bushfire events in the front of our minds, we thought it appropriate to discuss the implications of purchasing a property in a known bushfire or flood zone.

Tales have emerged in recent months of many uninsured residents struggling to rebuild following the destruction of their properties. While there may be a percentage that were simply lax in maintaining a current policy, many may have chosen to cancel or let the policies lapse due to pressures placed on the household budget due to premiums.

A significant rise in claims tends to lead to pressure being placed on future premiums by insurers and recent events will be no exception.

What does this mean for you as a prospective buyer?

Each marketing contract will contain a Planning Certificate from the relevant council detailing points such as:

· Zoning

· Development (vague)

· Environmental issues

· Mine subsidence

· Flood and bushfire policies and restrictions

These are issues we normally review with you, prior to committing to any purchase.

Depending on the type of property and your intended use, this report may contain pertinent information that may make the purchase unsuitable.

When considering bushfire and flood zoning, these 2 factors may result in a significant increase in potential insurance premiums. In extreme cases, a property may NOT be insurable.

If your heart is truly set on a property with these classifications, it may be prudent to contact your insurer, in order to ascertain potential premiums for future years. Depending on the outcome, a significant increase in premium may be a deal breaker for your long-term sustainability.

Another process to help provide some comfort is to work with a bushfire consultant or the NSW Rural Fire Service – to get confirmation of your Bushfire Attack Level (BAL) and the steps required to protect your new home as best as possible.

If you have any questions about your situation, contact me via leah@stevensconveyancing.com.au or call 0414 894 031 to discuss.

Check to see how bushfire prone a location is

https://www.rfs.nsw.gov.au/plan-and-prepare/building-in-a-bush-fire-area/planning-for-bush-fire-protection/bush-fire-prone-land/check-bfpl

Check with local council if a site is flood prone

https://www.newcastle.nsw.gov.au/Flooding

http://www.cessnock.nsw.gov.au/community/roads/Flood

https://www.lakemac.com.au/Development/Planning-and-development-services/Flood-Report-Tool

Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Stevens Conveyancing does not take responsibility for any errors or omissions obtained from the use of this information.