How Do Climate Risks Affect Your Next Home?

When it comes to buying a home, climate change is becoming a significant factor in decision-making. The National Association of Realtors (NAR) reports that:

“Sixty-three percent of people who have moved since the pandemic began say they believe climate change is—or will be—an issue in the place they currently live.”

As you consider your next move, it's crucial to factor in climate risks, regardless of location. A recent study from Realtor.com highlights the increasing influence of climate change on real estate decisions. y

How to Safeguard Your Investment

To ensure your home investment is secure from climate risks, start by working with a local real estate agent who understands the environmental hazards specific to the area, such as wind, floods, and wildfires. Your agent’s local knowledge is invaluable in assessing the potential risks your future home may face.

Beyond local insights, two critical aspects to focus on are the durability of the home and the insurance needed to protect it.

A Home Built to Last

If you're planning to stay in your new home for many years, its durability is key. Collaborate with your real estate agent to verify that the home is built to withstand environmental hazards. Modern building techniques, such as installing a secondary water barrier on the roof or using noncombustible, fire-resistant exterior materials, can greatly enhance a home's resilience to climate change.

If the home you're interested in lacks certain protective features, your agent can advise on potential negotiations in the contract or future upgrades that may be necessary.

Insurance to Protect Your Home

After ensuring the home is structurally sound, the next step is securing appropriate insurance. Selma Hepp, Chief Economist at CoreLogic, explains:

“. . . homeowners are going to become increasingly more aware of risks of living in some areas as it becomes prohibitively expensive or very difficult to obtain hazard insurance.”

In areas where climate risks are more pronounced, having the right insurance is crucial. The cost of insurance is an important consideration for your budget and overall cost of homeownership. It's wise to get insurance quotes early in the buying process, compare multiple options, and understand the coverage you need.

While these considerations might seem overwhelming, your real estate agent can guide you through the process. They will be your resource for navigating the complexities of homebuying, including understanding and mitigating climate risks.

Bottom Line

Climate change is an essential factor to consider when purchasing a home. Given that your home is a major investment, being prepared for any climate-related impacts is crucial. With the right planning and advice from an experienced real estate agent, you can find a home that fits your needs and is protected against climate risks. Let’s discuss how we can help you find the perfect, resilient home.

5-29-2024