"Insurance is now 'the third leg of the affordability stool'. Buyers should treat the insurance underwriting process as a parallel track of due diligence, not an afterthought to be sorted out after the inspection period ends."
"Flood zone designations, wildfire brush scores, and wind mitigation ratings can swing annual premiums by thousands of dollars and should be confirmed before waiving contingencies."
"Buyers must seek total transparency regarding a property's environmental exposure. Flood, fire, and other evolving risks are not purely environmental concerns but critical factors in the home buying process."
Homebuyers must consider climate risk alongside location, price, and condition when purchasing a home. Natural hazards like flooding and wildfires affect property values and insurance availability. Insurance is now viewed as the 'third affordability pillar,' necessitating thorough due diligence during the buying process. Homeowners insurance may not cover specific risks, requiring additional policies for flood or fire protection. Buyers should obtain a Natural Hazard Disclosure to understand a property's environmental exposure and avoid unexpected costs related to climate risks.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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