Last year, 14.5M properties suffered damages from natural disasters to the tune of $56.9B, according to CoreLogic.
14.5M Properties Cost $56.9B Due to Natural Disasters in 2021
CoreLogic just released its 2021 Climate Change Catastrophe Report. This report estimated that one in ten US homes, or roughly 14.5M properties, were touched by hurricane, wildfire, winter storm and/or severe weather events in 2021. These varied natural disasters caused approximately $56.9B in property damage.
eminder it’s the New Year. You promised yourself you would become a HARRIS Coaching client. You are done wasting time and want to follow a proven path in 2022. Now, while you are here make the next natural step and join the 1000s of other agents as a HARRIS Real Estate University co
Entire Communities & Economies Affected by Natural Disasters
Homeowners, of course, are not the only ones affected by impacts of natural disasters on their properties. Mortgage lenders and insurers are also directly affected.
Let’s also not forget potential homebuyers who must also factor in climate risks, along with rising mortgage rates and rising home prices, to their calculations of where and what to purchase a primary, second/third, vacation rental home. In fact, a recent survey done by Realtor.com found that 78% of buyers are now considering natural disaster risk when looking for a home.
And these days, with climate disasters rising with increasing frequency and intensity, appointed/elected city/county/regional/state/federal officials and departments have to take the lead in developing mitigation, prevention, rezoning, funding and legislative efforts to deal with the wide-ranging impacts of natural disasters.
CoreLogic’s Estimated Property Damage Caused by Natural Disasters in 2021
- Wildfires – $1.46B
- Severe Weather (including tornadoes and hailstorms) – $7.46B
- Hurricanes – $33B
- Winter Storms – $15B
Long-Term Impacts of Natural Disasters
CoreLogic repeatedly emphasized in this 2021 Climate Change Catastrophe Report that direct costs from natural disasters swallowed by homeowners and insurers are just the tip of the iceberg when climate disasters hit.
This report stated that natural catastrophes “often leave communities with significant long-term impacts,” and recovery can continue “long after rebuilding is complete.” Additionally, the report stated, “A significant portion of the population may not wait for physical infrastructure to be rebuilt, instead choosing to relocate. This can leave the area with less human capital available to sustain its local economy…in addition, job displacement and the destruction of real estate assets can leave many community members unable to pay their mortgages or afford reconstruction costs. This is especially true in low-income areas, where underinsurance rates are high, and savings rates are low.”
Likewise, reconstruction costs are now at least 19% higher now than they were pre-pandemic due to escalating material costs, labor shortages and supply chain disruptions.
An important question for you. 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!
4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
CoreLogic’s Advice to Multiple Stakeholders
CoreLogic suggests in this 2021 Climate Change Catastrophe Report the following advice;
- Mortgage servicers – create better risk assessment tools & educational programs on proactive hazard mitigation
- Local/state/federal governments – create/enact policies based on latest research on impacts of natural disasters
- Insurers – improve underwriting accuracy, claims management efficiency and homeowner education based on data and analytics
Thanks to CoreLogic and Inman.
