{"id":6508,"date":"2025-05-12T08:19:00","date_gmt":"2025-05-12T12:19:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6508"},"modified":"2025-05-12T08:19:03","modified_gmt":"2025-05-12T12:19:03","slug":"the-resilient-deed-what-property-buyers-should-know-about-climate-weather-and-insurance","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/the-resilient-deed-what-property-buyers-should-know-about-climate-weather-and-insurance\/","title":{"rendered":"The Resilient Deed: What Property Buyers Should Know About Climate, Weather, and Insurance"},"content":{"rendered":"\n
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We all live somewhere on Earth. Today, that means we all deal with some measure of climate-related risk.<\/p>\n\n\n\n

The \u201cnew normal\u201d involves highly abnormal <\/em>weather patterns, stronger storms, hotter heat. Florida, California, and Texas are frequently in the news for this reason. But even \u201cclimate havens<\/a>\u201d now deal with tornadoes and major floods. All this is pushing up the price of homeowners\u2019 insurance \u2014 and a deed holder\u2019s monthly costs.<\/p>\n\n\n\n

What do you need to know to reduce your risks? Take a look.<\/p>\n\n\n\n\n\n\n\n

Seller Disclosures Are High-Stakes Documents<\/h2>\n\n\n\n

All sellers and their agents must meet their state and local disclosure standards. Buyers, use special caution in \u201ccaveat emptor states<\/a>\u201d where sellers, by default, don\u2019t have to disclose.<\/p>\n\n\n\n

Most home sellers should tell buyers about significant defects, and agents can help a buyer understand what home sellers are telling them.<\/p>\n\n\n\n

Yes, some sellers do hide defects<\/a>, so take this aspect of due diligence seriously. You can do some scouting on your own, too. Sites like Portfolio Protect<\/a> let you type in various street addresses and compare risks.<\/p>\n\n\n\n

Pick up all the knowledge you can at your home inspection, too. Professionals know the local building codes. (There are now online databases that store state and city building code information<\/a>, fire codes etc. for businesses and individuals to use.)<\/p>\n\n\n\n

In most places, prior floods must be disclosed. But not all.<\/p>\n\n\n\n

Important note for Florida deed holders: Since October 2024, Florida home sellers must\u00a0<\/strong><\/em>disclose past flood insurance claims<\/em><\/strong><\/a>.<\/strong><\/em><\/p>\n\n\n\n

Ask the inspector about the source of the home\u2019s water and how it will hold up to an extended drought. Look into water quality and sufficiency in a whole-neighborhood context. Consider nearby properties, too. Are the surrounding homes maintained in ways that take climate resilience seriously? More on that in our section on fire, below.<\/p>\n\n\n\n

What\u2019s the Deal With Homeowners\u2019 Insurance Now?<\/h2>\n\n\n\n

Extreme weather events push up insurance claims. Insurance companies then charge everybody more.<\/p>\n\n\n\n

Across the board, deed holders now allocate more than 9% of their total monthly housing payments to their homeowners\u2019 insurance. This is unprecedented.<\/p>\n\n\n\n

If you have a mortgage, your lender requires the collateral (your home) to have insurance coverage. Rising insurance costs are clearly a factor working against hopeful buyers. And owners, too. Some senior deed holders on fixed incomes are forced to decide between paying for insurance or groceries<\/a>. \u00a0<\/p>\n\n\n\n

And prices are poised to keep going up, according to recent reporting. We can\u2019t change that, but we can keep a few tips in mind:<\/p>\n\n\n\n