More South Floridians homeowners find themselves stuck in a financial bind, paying for a home insurance policy that every year is on the rise. Add to this, a report released on Wednesday stating that climate change could cause some areas to be uninsurable.
A study by First Street Foundation, a nonprofit that analyzes climate risk, warns that the national real estate market “has not adequately priced the cost of climate into its valuation.” The research has alarming implications for homeowners especially those living in Florida, California, and Louisiana – who according to the study – will be facing sharply higher insurance costs because of increased damage from extreme weather that experts attribute in part to climate change.
First Street estimates, factoring climate models into the financial risk of properties in its report, that roughly 39 million properties — roughly a quarter of all homes in the country — are being underpriced for the climate risk to insure those properties. “Some places may be impacted very minimally, but other places could see massive increases in insurance premiums in the coming years,” said Jeremy Porter, head of climate implications at First Street and a co-author of the report.
First Street, a New York-based non-profit, has been a to-go researcher on the financial implications of climate change for years. Their research is used by Fannie Mae, Bank of America, the Treasury Department, and others for understanding the potential risks to properties.
Going forward, it may become more necessary for potential homebuyers to look at the cost of insuring the property they are looking at before locking in a mortgage rate, due to the potential for significant rate hikes in the future. “It used to be homeowner’s insurance was an afterthought when you are looking at buying a property. Now you’ll really need to do your research into what risks there may be in that property in the coming years,” said VIU by Hub’s Bevington.
The Consumer Law Office (CLO) is a Property Insurance Law Firm committed to delivering excellent customer service & results. Our Property Damage Attorneys fight insurance companies on behalf of our residential and commercial policyholders and public adjusters, to get the relief they are entitled to. We have helped numerous home and business owners successfully recover the compensation they deserve.
Your insurance company hires experts to protect their interests; your representation should be no different.
We only get paid when you get paid by your insurance company.
CONTACT CLO TODAY! 305-940-0924 FOR A FREE COMPREHENSIVE PROPERTY DAMAGE ASSESSMENT AND CONSULTATION.
