More than a week ago I suggested that home insurance should be compulsory. Quite simply, if home owners can’t afford the insurance then they can’t afford to own a house. It’s gratifying to learn that the insurance industry has just come out with a similar statement. Australian insurers would like compulsory insurance for residents in bushfire prone areas. However, I would extend that to all home owners in all areas, not just the bushfire prone areas.
The following extract comes from Sky News March 1
Australian insurers are leading a call for compulsory insurance for residents in bushfire prone areas, in the wake of Victoria’s devastating fires.
The Insurance Council of Australia has also questioned, how much of the $200 million Victorian Bushfire Appeal Fund, should be given to uninsured victims.
ICA boss Paul Giles says there’s no incentive for people to insure against bushfires, if their uninsured neighbours are going to be helped to rebuild anyway.
He also claims a compulsory home and contents insurance scheme would be no different to current Compulsory Third Party car insurance.
A Victorian government spokesman says the issue of compensation to uninsured victims, would be examined by the bushfire royal commission.