In 2024 alone, the United States experienced 27 separate weather and climate disasters caused by flooding, hail, wildfire, snow, drought, cyclones, and more.1 These incidents occurred all throughout the country, hitting unsuspecting communities from Oregon to Florida and many states in between.
If you’re in the market for a new home, have you considered how climate change might impact your search? Not only can risk of flood or wildfire make certain properties more risky than others, but it can impact your ability to obtain insurance or feel secure in your own home.
Below we’re sharing some of the questions you might want to ask yourself and your real estate agent during the homebuying process, especially if you’re looking to relocate to a more disaster-prone area.
When looking at homes, one of the factors likely impacting your decision is the home’s age and year of construction.
Older homes can come with solid, sturdy foundations, depending on what decade they’re from and the care that went into maintaining them. In some cases, they may have a long history of issues that are hard to decipher from a surface inspection. But, generally speaking, homebuyers may be able to find more lucrative deals on older homes, especially if the interior is outdated.
New homes (say those built within the last 10 years or so) are generally more move-in ready, have more energy efficient upgrades already built in, and often come at a premium cost for the convenience. The trade-off, however, is that the home may require fewer repairs or have lower utility bills, saving homeowners more money over time.
In terms of preparing for climate change, new homes may also have the advantage—potentially making them well worth the higher upfront costs.
As states and cities are hit with natural disasters like floods, hurricanes, wildfires, and tornadoes, they start to identify which preventative measures are most effective. For example, homes along the coast may be able to avoid some hurricane damage if they have impact-resistant windows, heavy-duty doors, or steel roofs and reinforcements. In areas where wildfires are more prevalent, fire-resistant materials may also be more prevalent, as well as ember-resistant vents and advanced sprinkler systems.
Older homes might not have these features, and homeowners may not be required to incorporate them since they’re usually grandfathered into older building codes. But as city and state building codes evolve to address climate change, more requirements for new builds are being put in place to protect homeowners from future property damage.
Wherever you’re looking to purchase a home, research the area’s climate-related building code requirements and find out what year they went into effect.
Consider looking for homes built after certain building codes became enforceable. Or, if you prefer to buy an older home, incorporate climate-related renovations into your budget. With a few important improvements, you may be able to bring the property up to meet newer code standards. In some cases, simple swaps or upgrades can make a meaningful difference in keeping your home safe during a natural disaster.
Residents of some states, like California and Florida, may not only be underinsured in the event of disaster, but many are actually having trouble getting coverage altogether.
Some major insurance carriers have pulled out of disaster-prone states in recent years. As the number of natural disasters increases, insurers and reinsurers are forced to pay out billions in payments each year (sometimes at the threat of exceeding earnings from premiums).2 In 2024 alone, natural disasters caused $112.8 billion in damages.3
Whether you plan on moving somewhere new or staying in the same city, consider that, depending on the climate risk in your particular area, obtaining or keeping homeowners insurance could be a challenge. Before purchasing a property, you may want to ask your agent to find out how much the current owner pays in homeowners' insurance and if they currently have additional policies, such as flood insurance.
As of now, nothing is stopping insurers from denying you coverage due to the location of your home. It does appear lawmakers are well-aware of the challenges and financial risk this creates for homeowners, and it’s possible we could see some regulatory changes in the future.4
Even if obtaining homeowners insurance isn’t a problem, keep in mind that damage caused by certain natural disasters won’t be covered.
While wildfire and tornado damage can be covered through your homeowners' policy, floods and earthquakes require separate insurance.3
The problem is, just one inch of floodwater in your home can cause around $25,000 worth of damages—and if you’re faced with a hurricane or severe rains, the costs only go up from there. Another surprising statistic? Around 25% of flood-related damage occurs in areas not deemed high-risk.5
Even if you don’t live along a coastline or you’ve never experienced a hurricane doesn’t mean your home isn’t vulnerable to a future flooding event. If you’re purchasing a home, you may want to consider obtaining additional insurance to protect it against climate change risks, like floods. FEMA offers flood insurance to residents in over 22,600 communities through its National Flood Insurance Program (NFIP), which covers any buildings or structures on the property and the contents within them.
The states experiencing the most earthquake activity include:6
That being said, the rest of the country is not immune to earthquake-related home damage. Earthquakes have historically occurred all across the country, exposing more than 50% of residents to potentially hazardous ground shaking.7
If you live in an area especially prone to earthquakes, it may be worth looking into an additional earthquake policy. As you continue searching for a new home, keep in mind that coverage may be more expensive for older homes that are not well-equipped to handle ground stress.8
Each state has its own disclosure requirements to protect homebuyers against hidden dangers or costly defects when purchasing a property. While the specific requirements vary by state, sellers are generally required to disclose previous major repairs to the home.
Some states require full disclosure on water damage, including water damage to basements, attics, and crawl spaces. California requires a natural hazard disclosure statement to alert homebuyers if the home is in a “seismic hazard zone” and subject to landslides or other serious damaging events.9
The Natural Resources Defense Council offers homebuyers a “Flood Risk Disclosures Scorecard,” which breaks down the specific disclosure requirements of each state in regards to flood risk and previous water damage.
Your real estate agent should be able to provide further information regarding your state’s specific disclosure requirements. If you’re concerned about a specific risk relating to climate change, you can always ask the buyers to disclose more about their history with the home—some may offer up more information willingly, even if they’re not legally required to do so.
As climate change continues to make winters colder and summers warmer, you may want to take a closer look at just how energy efficient your potential new home is—or see if there are easy ways to upgrade the efficiency later on.
A home that’s more energy efficient can lower your utility bills (sometimes significantly) while keeping you feeling comfortable all year round. For instance, the average person spends around $2,000 on energy annually. But in homes using outdated cooling and heating systems, $200 to $400 of that energy is wasted—especially if the windows and doors are drafty.10
A more energy-efficient home not only helps keep you comfortable in more extreme temperatures while lowering your energy bills, but it can help reduce your carbon footprint as well. If you’re looking for simple ways to go greener, buying a home (or renovating one) with energy-focused features can be an effective way to lower your impact.
Some possible energy-focused upgrades to look for in your new home include:10
The homebuying process is stressful enough. But when you’re making a major investment in where you live, it’s worth knowing how defensible your future property is against the sort of climate events that can’t be prevented.
While a property well-equipped for climate change might come at a higher price tag (though this isn’t always the case!), it could save you in the long run by preventing costly damages and insurance headaches.