Homeowners unaware of looming insurance hit

Homeowners unaware of looming insurance hit

Home insurance costs are set to soar for people living in high-risk areas and residential real estate investors as climate change becomes more severe across the US, according to a whitepaper on the impact of global warming on property.

Titled ‘Weathering the Storm: Burgeoning Insurance Costs for Real Estate’, the 14-page report by proptech firm SitusAMC outlines that people living in areas at high risk from natural disasters were largely unaware of rising home insurance costs.

The report highlighted that extreme weather events would impact the entire country and not just along vulnerable coastlines such as South Florida, warning that there was a “substantial disconnect between insurers and real estate market participants about the magnitude of these (insurance premium) increases”.

One of the report’s authors, Jennifer Rasmussen (pictured), told MPA that the average homeowner “was not cognizant of the sheer magnitude of these insurance rate increases”.

She said: “People just aren’t aware that these natural disaster risks are occurring everywhere. It’s not just where the headline news points you to in terms of where natural disasters are occurring.”

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