Real Estate Industry News

Horrifying and destructive, Hurricanes Dorian, Irma and Maria showed us the severe nature of the storms we can expect in the future. Not just hurricanes, but tornadoes, wildfires, landslides, floods and extreme snowfall have become more common. The year 2017 was the most expensive year in recorded history for weather and climate-related insurance losses, costing the U.S. more than $300 billion. The 2018 insurance losses for California topped $12 billion following the deadliest and most destructive wildfires in a century.  More than 13,000 insured homes and businesses were destroyed out of more than 46,000 claims reported by insurers.  Midwest flooding is preventing farmers from planting crops and there is much discussion about how weather is likely going to affect farmer yields this year. 

Following climate related events, property valuations take a big hit.  An analysis by the National Council of Real Estate Investment Fiduciaries (NCREIF) and the National Hurricane Center data found that for all property types, on average, a hurricane decreases values by almost 6 percent one year after the storm hits. The negative effect is even greater after two years, with a 10.5 percent valuation decrease.

How can individual homeowners prepare for extreme weather events so that their families and pets are spared harm and their homes protected?

“Measures to take include making evacuation plans and going over them with the whole family,” says Dan DiClerico, Smart Home Strategist and Home Expert at HomeAdvisor. “Make an emergency kit that includes a go bag for medications, and, if you have pets, go-to place in an evacuation is pet friendly. Give your kids contact information so that, if you are evacuating while they are at school, they can reach you.”

Besides planning for your personal safety, read your insurance policy.

“One inch of water in a house can cost $20,000 in damages,” DiClerico says. “It is important to know what your insurance covers. For example: standard home insurance policies do not cover flooding. If you are in a vulnerable area, get flood insurance.”

He adds that America’s 50 million renters should get renter’s insurance.

The most common consequence of severe weather is loss of power, which can set off a chain of disastrous events including frozen pipes and dangerous open flames. Generators range from small portable units to those programmed to come on automatically if your home loses electricity.

Routine maintenance becomes vital when severe storms threaten. Check gutter systems to ensure that they can channel off heavy rain. Make sure the grading around your foundation directs water away from the house, not into it. Get a sump pump to get water out of the basement if you do experience flooding.

If a storm is heading towards your house, store lawn furniture so that pieces do not become flying projectiles. Close and tape windows. Park your cars on higher ground and move electronic equipment and valuables.

“In case of loss, make an inventory of the items in your home,” DiClerico says. “That is probably easiest to do with your cell phone: walk around your rooms and make a video of everything while you describe what you are looking at.”

We may not be able to stop storms from coming, but, hopefully, we can minimize the damage.