How Do Climate Risks Affect Your Next Home?

How Do Climate Risks Affect Your Next Home?

Climate change is affecting where people choose to buy homes. 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, it's important to consider climate change, no matter where you are. A recent study from Realtor.com highlights the increasing impact climate change is having on real estate (see below):

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

First, collaborate with a local real estate agent who can help you understand the likelihood of your future home being exposed to hazards like wind, floods, and wildfires. Your agent's knowledge of the area will provide valuable insight into the risks you may face.

Additionally, consider two crucial factors: the quality of the home you want to buy and the insurance coverage you'll need to protect it.

A Home Built to Last

If you plan to stay in your home for many years, you'll want to ensure it's built to last. Working with your real estate agent can help you identify homes that can withstand environmental hazards. Agents are knowledgeable about the latest building and remodeling techniques designed to protect homes from climate change, such as secondary water barriers on roofs or noncombustible, fire-resistant exterior walls.

If the home you're interested in lacks these features, your agent can help you negotiate their inclusion in the contract or assess what future work might be necessary.

Insurance To Protect It

Once you're confident that the home you're considering is well-built, the next step is to determine the cost of insuring it. As 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 significant, having the right home insurance is crucial. The cost of that insurance is an essential factor to consider when evaluating your budget and the true cost of buying and protecting your home. It's a good idea to get an insurance quote early in the process since comparing multiple quotes can take several weeks.

While this may seem overwhelming, don't worry—your real estate agent is here to help. They will be your go-to resource throughout the homebuying process, guiding you on what to look for and consider, including how climate change might impact your future home. With the right planning and your agent's expert advice, you can navigate this journey successfully. Homeownership is worth it, and with a great agent by your side, you can find the perfect home.

Bottom Line

Climate change is an important factor to consider when buying a home. After all, your home is a significant investment, and you want to be prepared for anything that might impact it. Let's connect so we can find the perfect home for you.