As weather conditions around the world become more and more unpredictable, it becomes sound advice for home owners to be prepared to face many possible scenarios.

It might seem trivial to measure the dollar value of property given the devastating loss of human life that has occurred in recent years as a result of some of the worst fires and floods in Australian history, but the fact is that the impact of natural disasters on homeowners’ and investors’ financial wellbeing can be totally demoralizing.

“The Insurance Council of Australia has recorded more than 60 environmental catastrophes in the past decade, with the property damage ranging from a few million dollars to as much as $4 billion,” says Australian Property Investor editor Eynas Brodie.

“Since the year 2000, property damage caused by fires in Australia has amounted to almost $2 billion, while flooding has cost property owners $884.7 million.”

It can be tricky to property markets and explains how to invest in an area that has previously been devastated by a natural disaster. Making sure you’re adequately covered financially if your property is damaged or destroyed should be of prime importance, says Brodie.

Brodie adds: “Changes to insurance policies and practices are something investors must keep on top of when it comes to buying in areas that have been impacted by a natural disaster, particularly flooding.”

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