Household insurance

Domain: 
Sustainable built and natural environments
Sub-Domain: 
Disaster vulnerability
Measure: 
Percentage of survey households who had adequate household insurance and type of insurance
Rationale: 
1

A key component of financial exclusion is the inability to purchase insurance. Insurance is a means of providing a safety net for individuals and households in the protection of key assets and as a means of risk management (Connolly, Georgouras, Hems, Wolfson, 2011). A household insurance measure can provide a snapshot of the economic vulnerability of a community.

Population growth has resulted in housing developments in areas that are more vulnerable to climate change and disaster impact (Crompton & McAneney, 2008). Insurance costs are increasing and some areas have been denied insurance altogether, which removes an integral mechanism for recovery and rebuilding and increases vulnerability (Morrow, 2008).

An appropriate level of household insurance is a major strategy in reducing vulnerability to natural disasters. Insurance assists households’ recover faster from the impact of a natural disaster. Insurance allows households to manage their risk (COAG, 2009).

Data Source: 
Resilience Profiles Survey 2011
References: 
Connolly, C., Georgouras. M., Hems, L., & Wolfson, L. (2011) Measuring Financial Exclusion in Australia, Centre for Social Impact (CSI), University of New South Wales, for National Australia Bank.
References: 
Crompton, R. & McAneney, J. (2008), The cost of natural disasters in Australia: the case for disaster risk reduction, The Australian Journal of Emergency Management, Vol. 23, No. 4.
References: 
Morrow, B. H. (2008). Community Resilience: a social justice perspective. Community And Regional Resilience Institute (CARRI), Research Report 4.
Survey Questions: 
3. Do you think you have adequate household insurance if your home was affected by a natural disaster?; Yes; No; Don’t know
Survey Questions: 
4. What type of household insurance do you have? (tick all that apply; Building insurance; Contents insurance; Not currently insured; Don’t know


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