How Do Climate Risks Affect Your Next Home?

How Do Climate Risks Affect Your Next Home?

Climate change is increasingly influencing people's decisions on where to buy homes. As experts at the National Association of Realtors (NAR) point out:

“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 considering a move, it's important to factor in climate change, regardless of your location. A recent study from Realtor.com highlights the escalating impact of climate change on real estate decisions. This information provides valuable insight into how environmental factors are increasingly influencing where people choose to live and buy homes.

To ensure your investment is safeguarded against environmental risks, begin by consulting with a local real estate agent. They can provide insights into the potential hazards such as wind, floods, and wildfires that your future home may be exposed to. Their knowledge of the area will be invaluable in understanding the specific risks you might face.

Additionally, consider two crucial factors: the quality of the home you intend to buy and the type of insurance coverage you will need. Assessing the construction and resilience of the home can help mitigate risks, while adequate insurance coverage will provide financial protection against potential damages. These steps are key in making a well-informed and secure real estate investment in the face of climate change.

A Home Built to Last

If you're planning to stay in your home for many years, ensuring its durability and resilience is crucial. A proactive step is to collaborate closely with your real estate agent to select a home designed to withstand environmental hazards. Real estate agents are knowledgeable about the latest building and remodeling techniques that enhance a home's resistance to climate impacts. These might include installing a secondary water barrier on the roof or using noncombustible, fire-resistant materials for exterior walls.

Moreover, if the home you're considering lacks certain protective features, your agent can guide you on what improvements can be negotiated into the purchase contract or what renovations might be necessary down the line. This advice can be invaluable in making a home safe and sustainable for the long term.

Insurance To Protect It

Once you're confident that the home you're considering is well-constructed, the next step is to understand what it will take to properly insure it. As Selma Hepp, Chief Economist at CoreLogic, points out:

“. . . 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 regions where climate risks are more pronounced, having the right home insurance is crucial and can significantly influence your decision-making. The cost of insurance is a vital consideration when budgeting for the total expense of purchasing and safeguarding your home. It's advisable to get an insurance quote early in your homebuying journey, as you'll likely want to compare several options, and obtaining these quotes can sometimes take a few weeks.

While navigating these considerations might seem overwhelming, your real estate agent is there to assist you. They are your primary resource for understanding the homebuying process, what factors you should consider, and how climate change could impact your potential new home. With careful planning and the guidance of a knowledgeable agent, you can confidently move forward. Homeownership is a valuable investment, and with a competent agent by your side, you can ensure that the home you choose is a perfect match for your needs.

Bottom Line

Climate change is a crucial factor to consider when buying a home. Given that your home is a significant investment, it's important to be prepared for any environmental challenges that might affect it. Let's connect so we can discuss your needs and help you find the perfect home that meets your criteria and is resilient against potential climate-related issues.