How Do Climate Risks Affect Your Next Home?

Climate change is impacting where people buy homes. As the experts at the National Association of Realtors (NAR) explain:

“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.”

If you’re planning to move, climate change is something you might want to consider, no matter where you are. A recent study from Realtor.com helps put the growing impact climate change is having on real estate into perspective (see below):

No Caption Received

So, how can you ensure that your investment is safe from the elements?

To begin, consult with a local real estate agent to determine the likelihood of your future home being exposed to hazards such as wind, floods, and wildfires. Your agent will be familiar with the area and can advise you on the risks you are likely to encounter.

Aside from that, there are two important considerations: the quality of the home you wish to purchase and the insurance required to protect it.

A Home Built to Last

If you intend to live in your home for many years, you want to know it will last. One way to think ahead is to work with your real estate agent to ensure the home you buy can withstand environmental hazards. They’re up to date on the most common building and remodeling techniques—like a secondary water barrier on the roof or noncombustible, fire-resistant exterior walls—used to protect homes from the effects of climate change.

And if the home you’re interested in doesn’t have the features you’re looking for, they can help you determine what you may be able to negotiate in the contract or what work it might require in the future.

Insurance To Protect It

Once you’re confident the home you’re looking at is well built, the next step is finding out what it’s going to take to insure it. As Selma Hepp, Chief Economist at CoreLogic, says:

“. . . 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 common, the right home insurance can make a big difference. And the cost of that insurance is a major factor in determining your budget and the true cost of buying and protecting your home. Get an insurance quote early in the process so you can compare multiple quotes, which can take several weeks.

Do not be concerned if this seems like a lot to think about. A representative can help. Your real estate agent will be your primary source of information about the homebuying process, including what to look for and consider, as well as how climate change may affect your future home. You can accomplish this with proper planning and expert advice from an agent. Homeownership is worthwhile. And with a great agent by your side, you can be confident that the home you find is a good fit.

The Bottom Line

Climate change is a critical factor to consider when buying a home. After all, your home is a significant investment, and you should be prepared for anything that may affect it. Let us talk so you can find the right home.

Post a Comment