CRICOS No. 00213Ja university for the worldrealR

Changing (water) landscapes

Issues for value(r)s

API NSW Country Conference 2014Rydges Mount Panorama, Bathurst, NSW

2-3 May 2014

Dr Lucy Cradduck

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CRICOS No. 00213Ja university for the worldrealR

CONTEXT• Water ‘issues’ becoming more prevalent

– Small, Newby & Clarkson, 2013

• More development in at risk regions– Robson, 2007; Yassin, Bond & McDonagh, 2011;

Sheehan, 2012

• Valuations need to be current and accurate– Spencer v Cth, 1907

• Changing ‘landscapes’ change risks– Diaz-Nieto et al, 2012

CRICOS No. 00213Ja university for the worldrealR

How to identify property at risk from water?

CRICOS No. 00213Ja university for the worldrealR

WHAT RISK?

• Sea

• River

• Sky

• Flood

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CRICOS No. 00213Ja university for the worldrealR

Sea

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CRICOS No. 00213Ja university for the worldrealR

Sea

• Rising sea levels– Cradduck & Teale, 2014

• Erosion – Zeppel, 2012

• More widespread flooding– Strauss, Tebaldi & Ziemlinksi, 2012

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CRICOS No. 00213Ja university for the worldrealR

River

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CRICOS No. 00213Ja university for the worldrealR

River

• Rising levels– Wilby & Keena, 2012

• Debris– Austin, 2013

• Flooding in previously ‘dry’ areas– Thagunna, 2013

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CRICOS No. 00213Ja university for the worldrealR

Sky

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CRICOS No. 00213Ja university for the worldrealR

Sky

• Storm surges– Harris, 1963

• Mudslides– Agence France-Presse, 2010

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CRICOS No. 00213Ja university for the worldrealR

Flood

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CRICOS No. 00213Ja university for the worldrealR

Flood

• Lack of understanding of risk– Cradduck & Teale, 2014

• Time lapse– Small, Newby & Clarkson, 2013

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CRICOS No. 00213Ja university for the worldrealR

IDENTIFYING AT RISK PROPERTY

• Government proscription of information provision– i.e. S.149(2) EPA Act 1979 certificate on development or sale– Eves, 2002

• Government information provision– Local government authorities– Federal government data bases– Mapping

• Online services– Google Maps– OzCoasts – Other geographic information systems (GIS)

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CRICOS No. 00213Ja university for the worldrealR

What can change the risk?

• Development

• Climate change

• (un)Reliable data

CRICOS No. 00213Ja university for the worldrealR

Development• More building in coastal regions

– Mason, 2011

• Impact from upstream events– Walker & Elks, 2010

• Development – Yassin, Bond & McDonagh, 2011

• Government interventions– Kunreuther, 1984

• Public works and changing policies

CRICOS No. 00213Ja university for the worldrealR

Climate change

• Storms will become more prevalent– Shephard et al, 2012

• Rising levels from climate change– Hu et al, 2013

CRICOS No. 00213Ja university for the worldrealR

Data

• Disclaimers– General on website

• … Council, makes no representation and gives no warranty about the accuracy, reliability, completeness or suitability for any purpose of the information. To the full extent that it is able to do so in law, the Council disclaims all liability … for losses and damages, … caused by or arising from anyone using or relying on the information for any purpose whatsoever…

– Paid search• Council makes no warranty or representation regarding the accuracy or

completeness of this flood enquiry. Council disclaims any responsibility or liability in relation to the use or reliance by any person on the information contained in this flood enquiry.

• Access to current data

CRICOS No. 00213Ja university for the worldrealR

OVERVIEW OF INSURANCE ISSUES

• Lack of understanding of issues– Risk

• Lack of history– Passage of time

• Policy wordings • Document literacy

– ABS, 2013

• Effect of exclusion provisions • Cradduck & Teale, 2014

CRICOS No. 00213Ja university for the worldrealR

Insurance issues, cont

• Cover

• Cost

• Responsibility

CRICOS No. 00213Ja university for the worldrealR

ISSUES FOR VALUE(R)S

• Data – Currency – Accuracy– Appropriateness – Completeness– Cost v instructions– Insurability

• Ease of use of systems

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CRICOS No. 00213Ja university for the worldrealR

FUTURE CONSIDERATIONS

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• Rising sea levels

• More sever weather events generally

– Wilby & Keenan, 2012

• Changing planning provisions– Rainbow Shores, 2013

• Acknowledging risks

CRICOS No. 00213Ja university for the worldrealR

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CRICOS No. 00213Ja university for the worldrealR

Dr Lucy Cradduck

Faculty of Law, QUT, Brisbane, Qldl.cradduck@qut.edu.au

+61 7 3138 4022

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