The ever more unpredictable behavior of infants due to climate change is having a measurable impact on the housing market, and with this reality in mind, Realtor.com is a nonprofit organization that provides data and critical resources. We are partnering with First Street. About climate change.
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Homeowners in hurricane-prone states along the Sunbelt and under constant threat of wildfires across California are having their home insurance policies terminated with little notice. New buyers should plan for delays in their home search based on which carrier takes the risk.
In summary, more unpredictable actions than ever before, like climate change infants, are having a measurable impact on the housing market, and this is the reality, and Realtor.com is a nonprofit organization providing data. We have now partnered with First Street. Essential resources on climate change and weather-related disasters. Inman said the real estate portal is using the foundation to provide aspiring homebuyers and real estate agents with insights on temperature, wind phenomena and air quality.
According to a March 13 press release, Realtor.com will deploy its data into three content modules: Fire Factor, Wind Factor, and Air Factor. Each component applies a ranking to the number of days a facility experiences each extreme case.
“Users can toggle between factors to see how specific risks are likely to affect areas of their home now and over the long term, and can compare their current exposure to risk with the typical mortgage term. “We show the expected change in each risk over 15 and 30 years,” the release states.
First AvenueThe company’s mission is clear: “Connecting climate risk to financial risk,” according to its website. The group helps the insurance, finance and real estate industries connect the two, helping large companies fully understand how the natural world impacts their profits and the health of the people they serve. We provide a series of analyzes to help you understand. In other words, almost everyone.
Other groups have emerged in recent years to meet this essential need, such as AreaHub and ClimateCheck. TopHap, a real estate data provider, provides users with risk visualization through map-based environmental surveys. Redfin also uses the services of First Street.
Last year, Inman reported a study showing that the U.S. real estate market may be overvalued by $187 billion due to uncalculated flood risk alone.
This means that U.S. homes could be overvalued by $187 billion due to unrecognized flood risks caused by climate change. This is more than twice as large a “climate housing bubble” as previously estimated, according to a study published last year. nature climate change.
The peer-reviewed study, led by economists at the Environmental Defense Fund (EDF), identified unexpected hotspots for overvaluation, including Appalachia and northern New England.
The study attributes the tendency to underestimate the risks posed by climate change to outdated flood insurance rate maps and inconsistent state-level flood risk disclosure laws.
Florida-based United Property Casualty & Insurance Co. is leaving its home state and several others as several other insurers exit the Sunshine State ahead of hurricane season. The company announced in August 2022 that it would withdraw its home insurance business from the state.
As of November 2023, more than 15 major airlines have left the state, with Farmers being the most recent significant example. orlando sentinel report About 100,000 policyholders in Florida will have to find a new insurance company.
The same thing is happening in California. State Farm has decided to leave the Golden State in 2023.
“We take our risk management responsibilities seriously,” the company’s statement said. “We commend the efforts of the Governor’s administration, legislators, and the California Department of Insurance (CDI) to reduce the damage caused by wildfires.”
“Many of California’s rural, forested communities are facing not only increased and more severe wildfires, but also increased insurance issues,” said Ryan Tompkins, a natural resources advisor at the University of California. Told. washington post In May 2023. It is becoming no longer updated. We are witnessing some kind of insidious, silent economic impact. ”
Los Angeles News Station KTLA Last November, there were further exit plans, with Merastar Insurance Company, Unitrin Motor Home Insurance Company, Unitrin Direct Property & Casualty Ltd. exiting residential underwriting operations in early 2024, and Kemper Independence Insurance Company The company also announced that it would be withdrawing from the project. This is part of a larger company-wide decision. Allstate also left California.
Realtor.com said in a release that 40% of U.S. homes, worth just under $20 trillion, are at risk of declining appraisals due to increased heat risk, wind damage, and increasingly harmful air quality. He said that
Home buyers often use the Internet to search for properties before finding an agent. The more data you can absorb about the market and its listings, the more informed you will be when touring vacant homes. Obviously, part of that is ensuring that your home remains insured and intact for the duration of your ownership.
Email Craig C. Rowe
