In today’s ever-changing climate, the risk of natural disasters causing damage to homes has become a significant concern among homeowners. With the increasing intensity of weather events due to climate change, it is essential for homeowners to understand their risks and take steps to protect their investments. Censuswide and Realtor.com conducted a survey that found 90% of respondents are concerned about natural disasters, particularly tornadoes, hurricanes, severe winter storms, and floods. About 70% of homeowners consider local climate factors when purchasing a home, with two-thirds expressing concerns about the threat of natural disasters to homeownership.
Realtor.com has recently launched an environmental risk factor score for all listings, providing homeowners and buyers with access to climate risk information. This data allows stakeholders to understand the climate risk associated with a property, including factors such as extreme heat, wind, and air quality. Users can toggle between different risk factors to see how they may impact a property in the present as well as in the future, projecting changes over 15 and 30 years. This information can help individuals make informed decisions about their home purchase and take steps to mitigate potential risks.
The data provided by Realtor.com is sourced from First Street, a leading climate technology company that connects climate risk to financial risk. By translating data on climate hazards, First Street provides insights into the risks associated with properties today and how they are projected to change in the future. For example, the risk of wildfires is expected to increase significantly in the coming years, impacting thousands of structures annually. The environmental risk factor score also highlights risks such as heat, wind, and air quality, allowing homeowners to assess the potential dangers to their property.
Wildfires have become a growing concern, with over 26,000 structures and homes destroyed from 2020 to 2022. Dr. Lori Moore-Merrell, U.S. Fire Administrator, emphasizes the importance of recognizing the risks posed by wildfires and taking preventative measures. Retrofitting structures with resilient materials, such as Wildfire Defense Mesh, can help reduce the risk of damage from wildfires. Additionally, community design plays a role in minimizing risks, with clustered residential development being safer than low-density residential areas.
As the costs associated with climate-related risks continue to rise, prospective buyers need to consider the financial implications of maintaining and protecting their homes. Danielle Hale, Chief Economist at Realtor.com, highlights the potential increase in maintenance expenses and insurance costs as a result of rising heat and other climate-related risks. Insurers are adapting to the changing landscape by providing more accurate risk assessments and adjusting premiums accordingly. CoreLogic is working with insurers to incentivize lower premiums for homeowners who invest in resiliency measures to protect their properties.
In conclusion, it is essential for homeowners to be proactive in understanding and mitigating the risks associated with climate change. By leveraging tools such as the environmental risk factor score provided by Realtor.com and taking preventative measures such as retrofitting structures, individuals can protect their homes and investments from the increasing threats of natural disasters. Collaborating with stakeholders across various industries, including insurers, product manufacturers, and city planners, can help create a more resilient and sustainable housing environment for the future. By working together to address climate-related risks, homeowners can ensure the long-term safety and security of their properties.