Extreme Weather Influences how Buyers search for Homes: According to the survey, 83% of prospective homebuyers contemplate at least one climate risk, with flooding being the greatest concern for many.
People in the West were most likely to report that climate risk had a significant impact on their housing search, followed by residents of the Northeast. However, one-third of Midwestern and Southern shoppers said climate hazards were not very impactful or not at all impactful to their real estate journey.
The majority of buyers would not consider relocating to a region with a lower risk of natural disasters, according to a recent survey. Only 23% of respondents indicated that they would prioritize their housing search in areas deemed safer from the dangers of climate disasters.
Nearly half of respondents indicated they intended to remain in regions with the same climate risks they already confront. Some are even considering relocating to more dangerous locations.
“Climate risks influence where the majority of prospective buyers look for a home,” said Manny Garcia, a senior population scientist at Zillow. Younger homebuyers are more likely to consider whether their property will be safe from rising water levels, extreme temperatures, and wildfires, whereas older homebuyers are more likely to prioritize budget, floor plans, and commute times.
You are typically required to carry homeowners insurance if you have a mortgage, but you are free to choose your insurance provider. If you wish to reduce the cost of your homeowner’s insurance, you could shop around for the cheapest rate. Credible can help you compare home insurance rates from leading insurers in a single location.
Getting insurance is harder in areas with greater risk
Extreme Weather Influences how Buyers search for Homes: Flood insurance premiums are on course to jump by double digits in some areas of the nation, according to the Federal Emergency Management Agency (FEMA). From $888 per policy, the average cost of flood insurance will increase to $1,808 across all states and territories.
Flood damage is typically not covered by a standard homeowner’s policy, but it is available through FEMA’s National Flood Insurance Program (NFIP) or the private market as a distinct policy.
In the Zillow survey, the risk of wildfires was cited as one of the top three concerns of the majority of respondents. Buyers should be aware that it is getting harder to insure homes at risk from this climate calamity.
According to multiple news sources, USAA intends to reduce its home insurance coverage in California beginning in March due to wildfire concerns. State Farm recently announced that it will no longer issue new homeowner’s insurance policies in California due to climate risk, citing increased exposure to natural disasters such as wildfires.
Whether you’re concerned about hurricane damage, tornado damage, wind damage, flood damage, or something else, it’s best to obtain multiple quotes from multiple insurance companies to compare prices and what’s not covered. To discover the best insurance rate for your circumstances, visit Credible to compare multiple providers at once and select the best option.
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Americans continue to relocate to hazardous regions.
According to a recent Redfin report, home listings and property sales in the hurricane-ravaged metropolitan area of Cape Coral-Fort Myers, Florida, are rebounding in the aftermath of last year’s major hurricane.
By early May, the metro area of Cape Coral-Fort Myers had gained 415 more new listings than it had lost. Moreover, after initially declining in the months following the landfall of Hurricane Ian, home sales in the region have largely recovered, and home prices have remained stable despite the prospect of additional storms.
Isabel Arias-Squires, a Redfin Premier Real Estate Agent, said in a statement, “Cape Coral’s builders have not stopped; they continue to construct as if nothing happened.” This is primarily due to the high demand for new dwellings.
Redfin reports that the prospect of paying more for insurance and its effect on affordability has affected homeownership decisions. According to Redfin, the increase in flood insurance premiums in Louisiana is causing many homeowners to leave the state. In December, the average annual premium for the state-mandated insurance program in Louisiana increased by 63% to $4,700.
Jes Menes, a real estate agent with Redfin Premier, stated that the increase in homeowners insurance premiums in the state of Louisiana decreases the amount of money people have to spend toward purchasing a home, thereby diminishing their purchasing power. “As a result of rising insurance costs, some landlords are increasing rents, making housing more expensive for tenants.
