CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Today's online New York Times has an article about the increasing numbers of cancelled homeowner insurance policies: Insurers Are Deserting Homeowners as Climate Shocks Worsen. This is probably behind a paywall.
The article talks about many of the issues we've discussed here, including increasing numbers of potential buyers who are unable to obtain mortgages as a result. This may fuel the current trend of homes being sold to investors who have the funds to pay cash for residential properties. Whether these investors are willing to buy in areas that are threatened by things such as wildfires is a different question.
The article also has a map of the US where you can see non-renewal rates by county.
FWIW, the board in my community has already had some discussions of flood risk in response to a question from a homeowner who asked about insurance. We're a good 1.5 miles away from the nearby river and are uphill. But a storm that dumps many inches of rain will overwhelm our detention pond and drainage system, so the nearby buildings with finished lower levels will probably flood. Flood risks like this don't appear on FEMA's maps that show flood risks - boards have to know their communities and be aware of how things like ponds behave.
In somewhat related news, last week I saw an article that talked about a recent wave of small earthquakes along the New Madrid fault zone. For those who don't know, the strongest earthquake experienced in this country occurred along that fault, and people have been saying that we're about due for another big one. Along with flood insurance, earthquake coverage isn't included in the typical homeowner or HO6 policies and must be added.
The article talks about many of the issues we've discussed here, including increasing numbers of potential buyers who are unable to obtain mortgages as a result. This may fuel the current trend of homes being sold to investors who have the funds to pay cash for residential properties. Whether these investors are willing to buy in areas that are threatened by things such as wildfires is a different question.
The article also has a map of the US where you can see non-renewal rates by county.
FWIW, the board in my community has already had some discussions of flood risk in response to a question from a homeowner who asked about insurance. We're a good 1.5 miles away from the nearby river and are uphill. But a storm that dumps many inches of rain will overwhelm our detention pond and drainage system, so the nearby buildings with finished lower levels will probably flood. Flood risks like this don't appear on FEMA's maps that show flood risks - boards have to know their communities and be aware of how things like ponds behave.
In somewhat related news, last week I saw an article that talked about a recent wave of small earthquakes along the New Madrid fault zone. For those who don't know, the strongest earthquake experienced in this country occurred along that fault, and people have been saying that we're about due for another big one. Along with flood insurance, earthquake coverage isn't included in the typical homeowner or HO6 policies and must be added.