NEW YORK, Aug. 1, 2019 /PRNewswire/ — Changing climate phenomena, such as rising sea levels, increased temperatures and heat waves, hurricanes and droughts, have grave financial implications for homeowners according to a new ValuePenguin.com study.
While coastal states like California and Florida have a lot of at-risk homes, the study found that there were some states with an unexpectedly high proportion of at-risk homes:
- States With The Largest Share Of At-Risk Homes In The Near-Future: Homeowners in Louisiana, New Jersey, Delaware, Maryland, South Carolina, Florida, Connecticut, New Hampshire and Alabama are predicted to have the largest share of at-risk homes by 2030.
- Climate Change Will Make Insurance More Expensive: Climate volatility has already impacted home and flood insurance rates in past years through destructive hurricanes and violent wildfires. Recent episodes, such as Hurricane Harvey in Texas and the 2017 California wildfire season – which saw some insurers raise rates by as much as 27.5% – illustrate how home insurance rates will continue to increase as insurers pay out more high value of claims due to the growing frequency of extreme weather events.
- Homeowners Face Tough Choices: Homeowners in areas particularly vulnerable to floods or fires face the tough choice of paying thousands of dollars more each year for insurance and repairs, or moving to a safer location. Some state and local governments offer relocation programs, which use federal and local government funds to buy out flood-prone properties at market price, allowing residents to get fair value for their homes and move to a less-vulnerable area – however, this isn’t an option available to all vulnerable homeowners.
ValuePenguin.com analysts calculated the proportion of vulnerable housing units in each state by dividing the number of at-risk homes, as projected by the Union of Concerned Scientists (UCS), to the state’s total housing units, taken from the U.S. Census Bureau. At-risk homes are projected for the year 2030 in a high-risk scenario in which there is expected to be a global sea level rise of over six feet by 2100. To view the full report, visit: https://www.valuepenguin.com/home-insurance-most-risk-climate-change
ValuePenguin.com, part of LendingTree, Inc., is a personal finance website that conducts in-depth research and provides objective analysis to help guide consumers to the best financial decisions. ValuePenguin focuses on value, assessing whether the return of a particular decision is worth the cost or risk of that option, and how this stacks up with the other possible choices they may have. For more information, please visit www.valuepenguin.com, like our Facebook page or follow us on Twitter @ValuePenguin.
Divya Sangam– Media Relations
Related Links: https://www.valuepenguin.com/average-cost-flood-insurance