Insight
Homeowners in the highest-risk areas paid $2,321—82% more in premiums than those in low-risk zones. Those in high-risk areas were also more likely to be dropped by their insurers, according to a Treasury study.
Controversial “Climate Risk Scores” Keep Rising—And It’s Making a Major Dent on Investor Profits in Major Markets
Summary
Climate risk scores are becoming a major factor in real estate, influencing insurance costs and potentially impacting investor profits. Hosts in high-risk areas could face higher insurance premiums and difficulty securing coverage. Hosts should assess their climate risk, consider property upgrades, and work with experienced insurance brokers.
Key takeaway