Warning more homes will be uninsurable due to flood risk

A coordinated policy response—such as mandatory flood insurance pools, stricter building codes in flood zones, or large-scale infrastructure investment—would likely ease near-term insurer pressure and reduce property devaluation risk, though it would require sustained government commitment and funding.

Continued withdrawal of insurers from flood-prone regions without systemic intervention would plausibly widen the gap between insurable and uninsurable stock, creating localized property market friction and potentially raising borrowing costs for mortgages in affected areas.

If flood events accelerate or insurers exit en masse, uninsurable properties could face sharp valuation declines and financing collapse in vulnerable postcodes, putting downward pressure on regional property indices and raising systemic risk for mortgage lenders with concentrated exposure.