Major urban centres including Sydney are “dangerously unprepared” for fire, and GSA Insurance Brokers says inner-city residents face 5%-10% increases in insurance premiums.

A growing number of high-value homeowners cannot obtain fire insurance, CEO James Telford says.

“With fewer insurers covering fire risk, those who can get coverage are paying even higher premiums. We’ll continue to see price increases across the market,” he said.

“With more homes being built in flood zones and bushfire-prone areas, combined with increasingly extreme weather, the insurance industry is struggling to find solutions.”

Flame Security International MD Justin Rooney says most fires are started by lithium batteries, campfires and cigarettes, and “we’re surrounded by flammable, toxic materials”.

About 85% of fires are triggered by human activity, including arson, carelessness or recklessness, a recent webinar hosted by Flame Security heard.

The company develops protection systems including a fire-retardant paint that expands and creates a protective insulating layer.

Flame Security says insurance companies increasingly encourage property owners to invest in fire-resistant materials and technologies, and insureds may be eligible for premium discounts as a result.

Mr Rooney says fire-retardant coatings form a protective barrier, absorbing heat and ember attacks and slowing the spread of flames and heat damage.  

“We’ve tested them extensively, both here and overseas, and they’re a practical, affordable, and sustainable way to protect homes and businesses,” he said.

“As more people start using fire-resistant technology, we could see new standards and regulations, especially in high-risk areas.

“Insurers will play a big role in shaping these changes, helping to improve community safety while making insurance more sustainable in the long run.

“If we want to prevent disasters instead of just reacting to them, we need to start using the solutions we already have, and everyone needs to get on board.”

Mr Telford, speaking at the webinar, agreed such solutions are a “win-win”.

“Fire-resistant materials lower the risk of big insurance claims, which helps insurers keep costs down and, in turn, makes fire resilience more affordable for homeowners,” he said. 

Click here to watch the webinar.