Climate change affects where you buy a house, the type you buy and the payments you make every month. While you want the most affordable rates on homeowner’s insurance, insurance providers can no longer guarantee good, stable rates. There are numerous ways that the catastrophic effects of climate change have complicated the process of buying homeowner’s insurance in Washington.
Climate change on homeowner’s insurance
Climate change increases the occurrences of extreme weather, such as droughts and floods, which worsens the extent of property damage. These damages increase the rates of mortgages, homeowner’s insurance and local real estate prices.
In the worst situations, climate migration forces thousands of homeowners to leave their neighborhoods. Some cases have led to real estate litigation that has changed local and nationwide housing laws. For instance, companies are required to reduce their negative impact on the environment and inform their clients about changing rates due to severe weather.
Most homeowner’s insurance companies state that climate change will affect their rates and the number of clients they have. In high-risk areas, property values decrease while the insurance rates become more expensive. Additional factors that affect the costs include the specific geographic location, the property’s age, the type of construction and the extent of coverage.
Natural disasters and occasional cases of extreme weather have worsened in the past, few decades. The results are increased risks and costs for the owners of property insurance and their insurance providers. In addition, many real estate companies have lost many clients due to climate change, and several governments and organizations have passed climate change laws.