Both homeowners and lenders may be underestimating the rising cost of insurance following a growing number of natural disasters, according to a SitusAMC white paper titled “Weathering the Storm: Burgeoning Insurance Costs for Real Estate.” The paper found that natural disasters have impacted residential property nationwide, not just in areas with highly publicized disasters such as California and Florida. The states with the most natural disasters were Texas (where winter storms accounted for 40% in total insurance market losses in 2021), Virginia, and South Dakota. As the number of disasters rises and their severity intensifies, insurance companies will face more risk, leading to higher insurance premiums and reductions in coverage for property owners. “The growing number of climate events has…
Natural disasters are impacting home values in high-risk areas at a time when home prices are soaring across the United States, according to a realtor.com analysis released Monday. The value of homes in high-risk flood areas grew at 5 percentage points lower than homes in similar areas with less flood risk, while the values of homes in high risk fire areas increased at 3 percentage points lower. In 78 flood-risk counties across the country, realtor.com found that homes with hurricane-related disaster declarations experienced a cumulative sales price per square foot growth of 25 percent, compared to 29 percent for homes with a moderate or major risk, and 30 percent for homes with a minimal or low risk. Realtor.com also found…
Led by homeowners and renters in the Northeast, more than a quarter of Americans say they want to or have already moved due to the recent spate of fires, floods and hurricanes, according to a new report by Redfin. The survey found that 27 percent of Americans said the natural disasters made them want to move, 23 percent said they like where they live more and half said it has had no impact. “Climate change still doesn’t feel like an immediate threat to a lot of people, but as more folks come face to face with wildfires, hurricanes and floods, we’ll see an increase in the number of Americans who consider moving due to natural disasters,” said Redfin chief economist…
