Whether you’re aware of it or not, flooding does happen in all 50 states. Some cases are more extreme than others, but it still pays to be aware of the flood plains in your area before you buy. Depending on where your new home falls on the map, your lender may require you to buy flood insurance in addition to your homeowner’s insurance.
Before you jump right into your new insurance, here’s a quick primer on some of the basics.
What kind of policy do you want and what do you want it to cover?
In general, most flood insurance policies have 3 main portions or components. As a homeowner, you need to decide how much money you want to put towards coverage for the building itself, the contents of your home, and all the replacement costs for everything.
What exactly is covered?
While list of specifics covered is very broad, flood insurance policies generally insure the physical damage done to your home as well as your personal belongings inside the home. This list includes but is not limited to, the building itself, electrical and plumbing systems, household appliances, furniture, valuable items, clothing and more.
What is NOT covered?
Even though flood insurance policies want to help you out as a homeowner and cover you as best as they can, there are certain specifications that are not covered by the insurance. This would include any damage done outside of your home (fences, shrubbery, patios, swimming pools etc.) In addition to this, vehicles parked outside of your house would also not be covered.
What is your risk?
Do you live in a moderate-to low-risk area? Even if your lender doesn’t require it, you may want to get flood insurance. According to Bankrate, around 1 in 4 flood claims is for a property that doesn’t sit in a flood plain.
Most people in moderate-to low-risk areas are likely qualified for preferred rate coverage. Meanwhile the high risk area homeowners are only offered a standard rated policy. Talk to your agent to determine which flood insurance policy will provide you with optimal coverage.
Flood insurance rates
As mentioned above, for homeowners living in a high risk flooding area, flood insurance will most likely be required. The rates involved in the different types of coverage mainly only depend on the quality of your home, the form of architecture, and of course, your area’s flood risk level. Depending on your community, it is a good idea to see if they offer a flood insurance discount. Especially if you’re in those high risk areas! Rates can vary significantly, but as a homeowner, it is best to be safe than sorry.
While flood insurance does have its limitations, it is just like any other policy. As a homeowner it is best to have it in case of an emergency. Make sure to talk to your agent to find out what plan is best for your home. There are plenty of preferred risk policies and community discounts offered. So do yourself a favor and cover yourself before it’s too late!
Insurance offers a vital safety net, protecting you against financial loss if something bad happens. One unexpected event — like a car accident, an emergency room visit or a storm that damages your home — could easily wipe out your savings. Insurance helps you manage the risk of a financial disaster. Let’s look at some basic types of insurance and when you might need them.
Medical insurance
Medical insurance helps cover your expenses if you’re hit with a big health-related bill. It’s also frequently used to pay for routine preventive care. The basic types of medical insurance are:
Health insurance
Even if you’re young and healthy, you need health insurance. If you don’t have insurance and you’re not covered by a program like Medicare or Medicaid, you’ll likely have to pay 100% of your health care costs out of pocket. Hospitals typically charge uninsured patients anywhere from two to four times what they’d charge an insurance company or public program.
Often, uninsured people must pay upfront to receive care.
Many people receive health coverage through their jobs. If you don’t work for a company that offers health insurance or you’re self-employed, you can shop for a plan on the Health Insurance Marketplace using healthcare.gov.
Dental insurance
Dental insurance pays for most preventive and basic dental care, like cleanings, checkups and fillings. If you need a major procedure, like a root canal, many plans will only pay around 50%. Still, dental insurance is often worth the cost if you take advantage of preventive care.
Vision insurance
Vision insurance pays for a portion of basic eye care, including eye exams, eyeglasses and contact lenses. If you don’t wear eyeglasses or contact lenses and only require an occasional eye exam, vision insurance may not be worth the cost.
Property and casualty insurance
Property insurance protects the things you own, like your house or car. Casualty insurance protects your assets in case you’re found legally liable for an injury or property damage. These two types of insurance are frequently lumped together in a single policy.
Homeowners insurance
Homeowners insurance helps you pay for repairs and replacement costs if your home is damaged by certain disasters, like a fire, or you’re the victim of vandalism or theft.
Most policies help pay for temporary housing if you’re unable to live in your home due to a covered loss. Your homeowners insurance can also help pay to defend you or cover medical bills if someone is injured on your property.
Though homeowners insurance isn’t required by law, your lender will probably require it if you have a mortgage. Even when it isn’t required, you don’t want to skip homeowners insurance due to the exorbitant costs of a major repair or rebuilding your home altogether.
Renters insurance
Your landlord probably has insurance on the property you rent, but most landlords’ policies only cover damage to the building and not your personal belongings. Renters insurance helps pay for the cost of replacing your belongings, like your furniture, clothing and electronics. It also offers liability protection and assistance with temporary housing costs if your unit becomes uninhabitable.
Some landlords require renters to have insurance. Even when it isn’t required, renters insurance is a wise choice, and it may cost less than you expect. The typical monthly premium for renters insurance ranges from $8 to $21, depending on your state.
Auto insurance
An auto insurance policy can financially protect you in the event of an accident, or if your car is stolen. Almost every state requires a minimum amount in order to drive legally. These minimum requirements include liability insurance, which pays for injuries or property damage you cause if you are at fault in an accident.
Most insurance companies offer optional types of car insurance coverage that can provide additional financial protection. For example, many insurers offer rental reimbursement, which pays for a rental car if yours is in the shop for a covered claim.
Pet insurance
Any pet parent who believes they wouldn’t be able to afford a major vet bill out of pocket should shop for pet insurance. Veterinary bills can add up quickly when your furry friend is sick or injured. For example, the cost of canine intestinal blockage surgery could be anywhere from $800 to $7,000, according to the Canine Journal.
Flood insurance
Most water damage caused by flooding isn’t covered by a standard homeowners insurance policy. That’s a serious concern for homeowners given recent severe weather events like Hurricane Ian in Florida, record-breaking rain in Montpelier, Vermont, and historic flash floods in Kentucky. You’ll need separate flood insurance to cover these types of damages.
Your lender will require flood insurance if you live in a FEMA-designated “special flood hazard area.”
But even when it’s not mandatory, homeowners should assess their flood risk to determine if a separate policy makes sense.
Umbrella insurance
An umbrella insurance policy kicks in if you’re responsible for damages or injuries that exceed the limits of your other policies, like homeowners and auto insurance. It often pays for your legal costs as well. Umbrella insurance isn’t legally required, but if you own property or have significant assets, consider an umbrella policy for additional protection.
Other types of property and casualty insurance
You may need other types of property and casualty insurance based on your situation. For example, earthquake insurance is probably necessary if you live near a fault line, as standard homeowners and renters policies don’t cover earthquake-related damage. If you own a boat, snowmobile, golf cart or all-terrain vehicle, you’ll need power sports insurance. Landlord insurance is a must if you own a property that generates rental income.
Life insurance
Would your death place a financial burden on others? If the answer is yes, then you need life insurance. If you’re not sure, ask yourself the following:
Does your partner or spouse rely on your income?
Do you have children or other dependents who rely on your income?
Could someone else inherit your debt, like a co-signer or joint account owner, or your spouse if you live in a community property state?
Would your funeral place a financial burden on loved ones?
Do you own a business that employs people that would likely fail in your absence?
If you answered yes to any of these questions, life insurance is a must. In most situations, term life insurance will be sufficient to meet your needs.
Disability insurance
A 20-year-old worker has about a 1 in 4 chance of becoming disabled before reaching retirement age.
Qualifying for Social Security Disability Insurance (SSDI) can be difficult, given that only 21% of initial claims were approved on average between 2010 and 2019.
Disability insurance replaces part of your income if you become unable able to work due to an illness or injury. Many employers offer disability insurance, but if you’re self-employed or your employer doesn’t offer coverage, consider buying individual short-term and long-term policies.
Your air conditioner is crucial, especially during scorching hot days. But what happens if your AC unit breaks down? Will your home insurance cover the cost to repair or replace it? Here’s what you need to know.
Does home insurance cover AC units?
Home insurance will cover your AC unit if it’s damaged by fire, lightning, vandalism, storms or other scenarios, or “perils,” your policy covers.
For instance, if a tree lands on your AC unit during a storm, your home insurance will likely cover the cost to repair or replace it. Similarly, if someone steals your AC unit, your insurance can help pay for a new one.
Your coverage also depends on what type of AC unit you have. Central air conditioning systems are typically covered under the dwelling portion of your home insurance policy because they’re attached to the home. Dwelling coverage is usually offered on an “open perils” basis, which means your central AC unit is probably covered unless it was damaged by an event specifically excluded from your policy.
However, if you own a portable or window AC unit, that likely falls under your personal property coverage, which pays for damage to movable belongings. Because personal property coverage is typically covered on a “named perils” basis, your policy may only cover damage to your window AC unit if it’s caused by a specific event named in your policy.
Insurance companies use precise language to describe what is and isn’t covered, so review your policy carefully and contact your carrier if you have questions about your coverage.
When does home insurance not cover your AC unit?
Home insurance typically won’t cover damage to your AC unit in these cases:
Wear and tear. Home insurance doesn’t cover damage caused by gradual wear and tear or aging. If your AC breaks down due to normal use over time, you’ll likely have to handle the repair or replacement costs on your own.
Lack of maintenance. Your insurer may deny your claim if the damage happened because you neglected your air conditioner’s regular maintenance.
Flood damage. Standard home insurance generally excludes coverage for damage caused by flooding, including damage to your AC unit. You’ll need separate flood insurance for that.
Mechanical breakdowns. Mechanical breakdowns usually aren’t covered under standard home insurance unless you’ve added equipment breakdown coverage to your policy.
Do you need equipment breakdown coverage for your AC unit?
Equipment breakdown coverage is an optional add-on to your home insurance policy that protects you financially against unexpected mechanical failures of essential household equipment, including your AC unit. It goes beyond standard home insurance by covering mechanical breakdowns that aren’t normally included in regular policies.
🤓Nerdy Tip
Think of it like this: Home insurance pays for AC unit damage due to fire, lightning, wind, hail and other covered perils. Equipment breakdown coverage pays for damage from sudden and accidental breakdowns caused by a faulty motor, circuit breaker or compressor.
How to file a claim when your AC breaks down
If your AC unit is damaged and needs repair or replacement, follow these steps to file a claim:
Document the damage. Take photos or videos of the damaged AC unit and any other affected areas to support your claim.
Decide if you want to file a claim. If your loss is covered by your policy, you now have to decide whether to file a claim. Take your home insurance deductible into consideration when deciding whether to file a claim, as it may be higher than the cost to repair the AC unit. Also consider the possibility that filing a claim may increase your premiums, which means you may not want to file a claim for a smaller payout.
Contact your insurer. If you decide to file a claim, you can usually do so online or over the phone. Be prepared to share photos, receipts and other documents. Keep copies of all of it.
Get an estimate. Ask a licensed contractor how much it will cost to repair or replace the AC unit.
Work with the adjuster. Your insurance company will assign an adjuster to your claim to assess the damage. Work with the adjuster to get your claim processed as quickly as possible.
Wait for payment. Once your claim is approved, your insurance company will provide payment for the repair or replacement of the AC unit. Follow up with your insurance company if you have any questions or concerns about the payment.
Just as every corner of the U.S. boasts its distinct charm, it also presents a unique set of challenges for potential homeowners. Whether you’re eyeing a home off the warm shores of Orlando, Florida, and the potential of underlying damage from hurricane seasons, or setting your sights in a picturesque house in Katy, Texas, where foundational concerns often take the spotlight, being well-prepared is paramount.
Navigating the realm of home buying can be both exciting and daunting, especially when it comes to the Lone Star State. Before taking the plunge into homeownership, one essential step that can’t be overlooked is a comprehensive home inspection. Consulting with seasoned professionals who are well-versed in the region’s nuances is key to understanding the potential pitfalls that may lie ahead. In Texas, a state known for its diverse geography and climate, home inspectors have encountered a range of issues that warrant careful consideration. In this Redfin article, we delve into some crucial tips and aspects to watch out for when it comes to a home inspection in the vast expanse of Texas. From foundation worries to pest problems, here are five things to look out for to help you safeguard your investment in the Lone Star State.
1. Cracking soil
“Cracking soil is a big problem in the Summer because the dry environment is impacting foundations. The expansive soils along the coastal region can expand and contract as much as 10%. That may not seem like much until you look at the entire footprint of the house: 10% can cause soil separation and structural damage,” warns Grace Home Inspection Services
“However, don’t start by calling a foundation repair contractor. The first thing you should do is carefully water your foundation. Many of the problems may be eliminated by this alone. After the return of rain and the saturating of the parched soils, you may find it worthwhile to continue watering while monitoring your foundation and the house for changes.”
Courtesy of Grace Home Inspection Services
2. Mold and rot
“The most, or rather the easiest thing, is to just use your nose. Things like wood rot have a very distinctive smell, and mold also has a very distinctive smell. Once you know those smells, you can identify wood rot the moment you put your head in a crawlspace. It’s at that moment you just have to figure out where it is,” says Advanced Home Inspections. “Additionally, the most common place where we find water damage is where decks are attached to the house. So, it’s always a good idea to keep an eye on that area, knowing that it’s a potential failure point.”
3. Weather changes and pest problems
“Weather conditions like hurricanes and flooding directly impact our region. Coastal homes face higher risks due to their proximity to the coast. We inspect for signs of previous flooding and assess wind-rated certifications in certain counties,” shares Before You Buy Inspection Services.
“Periodic flooding is a reality we deal with. While most flooded homes are properly restored, it’s worth noting that some opportunistic and less reputable companies tend to surface after natural disasters, providing subpar quality in their repairs.
Pest infestations and termite damage, prevalent in our Gulf Coast area as well, warrant specialized inspections. Leaks and indications of insects should be addressed.”
Courtesy of Before You Buy Inspection Services
4. Foundation issues
“Living in the Gulf Coast Area of Texas comes with its own set of challenges, and among them, foundation problems and termite infestations stand out. Our unique soil and climate conditions create an environment that’s conducive to the development of these issues,” notes AM Solutions LLC.
“One unmistakable sign of potential foundation problems is the separation along the brick veneer expansion joint. Similarly, a termite tube—typically found on the foundation grade beam—serves as an indicator of potential termite infestation. These signs are crucial and require further evaluation by either a Licensed Structural Engineer or a Licensed Pest Operator before making any purchasing decisions.”
Courtesy of AM Solutions LLC
5. Identifying water damage
“Given the high humidity levels, floods, and occasional severe freezes such as those experienced in February 2021 that led to burst pipes, being aware of mold damage is of utmost importance, often remaining concealed,” recommends Dunn Inspection Services.
“Our examination includes an assessment of the exterior foundation. If the footing is low or the soil is high, and if the grade exceeds the siding or bricks, there’s a strong likelihood that mold is present within the structure. Additionally, termite damage is highly probable in such cases. In older homes, deteriorated moisture barriers in perimeter walls are common. We meticulously search for indicators like texture alterations, warped molding, and water stains on interior walls.
Modern residences with energy-efficient systems, such as sprayed insulation in attics and high-efficiency HVAC systems, can inadvertently foster conditions conducive to mold growth. I pay close attention to elevated humidity levels in these conditioned attic spaces and watch for telltale signs, like components of the HVAC system or ductwork showing rust. Inspect furnace filters closely and check the interior of the return for any signs of water marks or stains.
Always bear in mind that mold spores are both invisible and potentially toxic. While inspecting the property, rely on your sense of smell. Is there a musty odor? Do you notice an excessive number of air fresheners?
For peace of mind and to safeguard your family’s health, the wisest course of action is to engage a licensed and qualified consultant to conduct air quality testing for hidden mold before making a purchase.”
A short ladder attack is a supposed trading condition in which hedge fund sellers come together to drive down a stock price that is already undergoing bearish pressure. Retail investors are often seen as the victims in this situation.
While not a purely defined strategy, some individual investors believe that these efforts work to the detriment of smaller traders. The theory is that as an asset’s price moves lower it prompts other investors to dump shares, leading to prices spiraling even lower.
How Does a Short Ladder Attack Work?
The short ladder attack strategy became notorious during the meme stock craze of early 2021 when shares of companies like GameStop (GME) and AMC Entertainment (AMC) experienced intense volatility and massive short squeezes. It was alleged that large investors responded with short ladder attacks to drive prices back down.
In 2022, there was even some chatter that various cryptocurrencies were targeted for the same bearish strategy.
A short ladder attack begins when an institution builds a large short position in a security. Being short involves buying shares, then immediately lending them out with the goal of re-acquiring them at a lower price. As the asset drops in value, the short seller profits.
The maximum profit on a short play is when the asset drops to $0, perhaps when bankruptcy is made official by the targeted company. A short ladder attack is meant to give the impression that shares of a stock (or any asset) are not worth what bullish investors believe, thus inducing other traders to dump shares or simply discourage others from buying.
Are Short Ladder Attacks Legal?
Short ladder attacks are usually legal trading tactics, but when market manipulation laws are breached, it becomes a serious crime. It is important to recognize that short selling volatile assets is an age-old Wall Street practice.
In general, there is nothing nefarious about shorting a stock. In fact, according to the U.S. Securities and Exchange Commission (SEC), short sellers add liquidity to the market. More liquidity can reduce trading costs for other market participants.
During bear markets, however, short sellers often come under scrutiny from both regulators and the investing public for their perceived efforts to bring down key stocks and the broader market.
In extraordinary situations, shorting stocks is sometimes ruled illegal — at least temporarily. Regulators will occasionally ban selling groups of assets short with the goal of stabilizing financial markets during periods of turmoil, such as during the Great Depression and the financial crisis of 2008-09. Beyond those instances, short selling is not illegal.
Short ladder attacks are infamous in the sense that traders engaging in such a strategy seek to drive asset prices lower. The tactic is not illegal, however. At times, though, there can be illegal attempts to take a stock price down.
Where is the line drawn? It’s when a trader manipulates the laws using malicious activities like lying about a company, bribing others to not buy shares of the targeted firm, or the practice of spoofing.
Example of a Short Ladder Attack
Short ladder attacks are not something traders see every day. In fact, they can be hard to spot. It’s not a truly defined term, rather it is a loose theory.
Still, market analysts and traders can suspect a certain stock is under this “attack.” Potential examples include popular Wallstreetbets meme stocks from early- to mid-2021: GameStop (GME), AMC Entertainment (AMC), and Bed Bath & Beyond (BBBY).
When shares of those companies began to falter during the first quarter of 2021, after their meteoric rise in the preceding weeks, conspiracies began to arise within internet chat rooms. Retail investors, who had lost money by being long those shares, claimed they were victims of unscrupulous trading strategies employed by large funds by way of short ladder attacks. It was thought that hedge funds came together to enter low bids that drove those securities lower.
Ask a short seller, and they might tell you that this strategy does not exist. After all, conspiracies to drive down a share price could venture into the market manipulation area, which would be against financial market rules.
💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
How Can You Identify a Short Ladder Attack?
Even as big-time traders dismiss the practice, short ladder attacks are thought by some retail traders to be a normal practice. Spotting these maneuvers is no easy task since selling pressure can come from a host of market participants for a variety of reasons.
Perhaps there is bad news about a company that might fundamentally bring about the bears (who have no ill intent). Maybe a stock drops below a key technical level, leading to further selling. Moreover, it could be that major company insiders are dumping shares simply to raise cash for personal reasons. All these scenarios can give the impression of a short ladder attack.
You still might wonder, “what is a short ladder attack?” in real life. Some possible hallmarks could be high volume on downward price moves. Also, be on the lookout for brief squeezes in which short sellers are forced to engage in covering — when bears quickly buy back stock they are short to avoid steep losses. Also, stocks with high short interest could be targets of a short ladder attack. Basically, whenever floods of offers hit a stock for no apparent reason, that could be a short ladder attack signature.
You might recall the mother of all short squeezes (colloquially named MOASS) term. It’s when a flood of buyers bid up shares that were being shorted by other investors. GameStop’s example was one to behold in that the price jumped hundreds of percent over the course of a few days.
Short Ladder Attacks and Wallstreetbets
According to those on Wallstreetbets, short ladder attacks exist to work against individual investors. By flooding the market with offers, the supply/demand balance tips greatly in favor of the bears. Posts on Wallstreetbets attempted to call out the practice, but little (if any) regulatory action has been taken.
This abusive ploy is alleged to be executed by a consortium of hedge funds, prime brokers, and even potentially regulators and clearinghouses. Target stocks are determined and prioritized, almost like a hit list. After driving shares lower, the short sellers avoid capital gains tax since they never have to cover their shares.
The Takeaway
Short ladder attacks are alleged bearish trading activities performed by large institutional traders that work against retail traders who are long a stock.
While the practice is not illegal on its own, crossing the line into market manipulation will catch the eye of regulators. Many large hedge fund managers claim to be unaware of such a practice. Additionally, research firm Muddy Waters is highly skeptical that short ladder attacks truly exist. Still, retail traders on internet stock trading forums claim they were victimized by short ladder attacks.
Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.
Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.
With SoFi, user-friendly options trading is finally here.
Photo credit: iStock/seb_ra
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The average cost of homeowners insurance in Kansas is $2,955 per year, or about $246 per month, according to a NerdWallet analysis. That’s more than the national average of $1,820 per year.
Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state. Even if an insurer serves your state, it may not write policies for all homes in all areas.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.
We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.
Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.
The best homeowners insurance in Kansas
If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the best homeowners insurance companies.
More about the best home insurance companies in Kansas
State Farm
Well-established insurer with a lengthy list of coverage options.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
State Farm
Well-established insurer with a lengthy list of coverage options.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
State Farm is a great choice for homeowners who like to work directly with a representative, as the company sells policies through a wide network of agents. And its attention to customer service has paid off; the company has fewer customer complaints to state regulators than expected for a company of its size.
State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.
Chubb
Perks and high coverage limits for affluent homeowners.
Coverage options
About average
Great set of discounts
NAIC complaints
Far fewer than expected
Chubb
Perks and high coverage limits for affluent homeowners.
Coverage options
About average
Great set of discounts
NAIC complaints
Far fewer than expected
Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and it pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)
Chubb policyholders may also be able to take advantage of the company’s HomeScan service, which uses infrared cameras to look for problems behind the walls of your home.
Farmers
Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
Farmers
Those seeking benefits like diminishing deductibles and claims forgiveness may want to consider Farmers.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.
Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.
American Family
Comprehensive coverage for homeowners in 19 states, mostly in the West and Midwest.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
American Family
Comprehensive coverage for homeowners in 19 states, mostly in the West and Midwest.
Coverage options
More than average
Average set of discounts
NAIC complaints
Fewer than expected
Founded in Madison, Wisconsin, American Family receives fewer consumer complaints than expected for a company of its size. You may be able to customize your policy with optional add-ons such as identity theft, equipment breakdown or service line coverage, which pays for repairs to water, power or other underground lines that run to your house.
Homeowners may be able to save on their premiums by installing smart-home devices, bundling multiple policies or setting up automatic payments.
USAA
Offers perks and affordable rates for the military community.
Coverage options
Below average
Average set of discounts
NAIC complaints
Far fewer than expected
USAA
Offers perks and affordable rates for the military community.
Coverage options
Below average
Average set of discounts
NAIC complaints
Far fewer than expected
USAA sells homeowners insurance to veterans, active-duty military members and their families. If you fall into one of those groups, you might want to look into USAA’s offerings. The company’s homeowners policies include some unique perks such as deductible-free coverage for military uniforms and coverage for identity theft.
Homeowners in Kansas can take part in the company’s Connected Home program, which gives you a discount on your policy if you buy and install approved smart-home devices. These include water leak sensors, cameras and thermostats.
How much does homeowners insurance cost in Kansas?
The average annual cost of home insurance in Kansas is $2,955. That’s 62% more than the national average of $1,820.
In most states, including Kansas, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.
In Kansas, those with poor credit pay an average of $5,195 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 76% more than those with good credit.
Average cost of homeowners insurance in Kansas by city
How much you pay for homeowners insurance in Kansas depends on where you live. For instance, the average cost of home insurance in Wichita is $3,250 per year, while homeowners in Topeka pay $2,605 per year, on average.
Average annual rate
Average monthly rate
Dodge City
Garden City
Hutchinson
Junction City
Kansas City
Leavenworth
Overland Park
The cheapest home insurance in Kansas
Here are the insurers we found with average annual rates below the Kansas average of $2,955.
What to know about Kansas homeowners insurance
When shopping for the best home insurance in Kansas, make sure to consider the potential for severe weather, including tornadoes, hailstorms, snowstorms, earthquakes and flooding. Read your policy carefully so you understand what’s covered and what isn’t.
Tornadoes
As part of Tornado Alley, Kansas gets more tornadoes than most states, seeing 68 tornadoes in 2022
. These storms can seriously damage homes, including roofing, windows and the structure itself.
Most home insurance will cover damage caused by strong winds. However, Kansans may have a separate wind and hail deductible, typically 1% to 2% of the dwelling coverage limit, which is the amount your insurer will pay to rebuild your house. So if your wind deductible is 1% and your house has $250,000 of dwelling coverage, you’d have to pay for the first $2,500 of wind damage yourself.
Another factor to consider is the cost of rebuilding your home if it’s destroyed. Talk to your insurer to make sure you have enough dwelling coverage to rebuild should that happen.
Flooding
Flooding is a concern for homeowners throughout Kansas because of heavy rain or rapid snowmelt. Standard homeowners insurance policies typically do not cover flood damage, so homeowners in flood-prone areas may need to buy separate flood insurance to protect their property from water damage.
To find out your risk, check out the Federal Emergency Management Agency’s flood maps and RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low-risk, it may be worthwhile to buy flood insurance for extra peace of mind.
Remember that while you can buy flood coverage at any time, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.
Thunderstorms and hail
Kansas is no stranger to spring storms, including punishing hailstorms bringing softball-sized hail that can damage your home. As with tornadoes, you may have a separate wind/hail deductible, typically 1% to 2% of your dwelling coverage.
Winter storms
Kansas can see harsh winter conditions, from freezing temperatures to blustering blizzards. A chilly winter wonderland can cause problems for Kansas homeowners, including frozen pipes or roof collapse under the weight of snow.
Homeowners insurance generally covers winter-related damage, but some types of damage may require extra coverage. For instance, you’ll typically need a separate flood insurance policy to cover flood damage caused by snowmelt.
Earthquakes
While not a massive risk for Kansas, the prevalence of earthquakes has increased over recent years, especially along the state’s southern border. However, standard homeowners insurance policies do not typically cover structural damage caused by earthquakes. You’d need to buy additional earthquake insurance.
Earthquake insurance often has a separate deductible, which can be between 5% and 25% of your dwelling coverage limit. If you have a 5% deductible on $200,000 of coverage, you’d need to pay $10,000 to repair earthquake damage before your insurance covers anything.
Kansas Insurance Department
The Kansas Insurance Department regulates the state’s insurance industry and provides consumer education on insurance and securities. The department’s staff can answer your questions about insurance by email at [email protected] or by phone at 800-432-2484.
Additionally, if you have a complaint about your insurer, the Kansas Insurance Department serves as an advocate. You can file a complaint online or can send in the consumer complaint form via mail or email.
Amanda Shapland contributed to this story.
Frequently asked questions
Is homeowners insurance required in Kansas?
Home insurance is not required by Kansas state law. However, your lender may require you to buy home insurance.
Does Kansas home insurance cover earthquakes?
Standard home insurance in Kansas does not cover earthquakes. If you live in a higher-risk area of the state, you may want to investigate separate earthquake insurance.
How can I save money on homeowners insurance in Kansas?
There are several ways to save money on home insurance in Kansas:
Shop around to make sure you’re getting the best rate.
Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but your premiums will be lower.
Fires are becoming increasingly frequent and destructive across the nation, particularly along the West Coast. Your homeowners insurance usually includes fire insurance, safeguarding against all accidental blazes. However, the specifics of your coverage can vary depending on where you live, especially if you own a home in wildfire territory.
So what is fire insurance, what does it cover, and how is it changing? Whether you live in a city with high-fire risk like Brentwood, CA, or in low-risk Duluth, MN, this Redfin article has everything you need to know.
What is fire insurance?
Fire insurance is a specific type of insurance coverage that compensates homeowners for accidental damage caused to their property by fire. It’s often included as part of a standard homeowners insurance policy, but depending on where you live and the specifics of your policy, the coverage can vary.
Does homeowners insurance cover fires?
Yes, homeowners insurance usually covers all fires, including wildfires. In fact, fire coverage is one of the foundational elements of most standard homeowners insurance policies. Here’s a breakdown of what’s generally covered in the event of a fire:
Dwelling coverage: This covers the structure of your home, including walls, roofs, and built-in appliances. If a fire damages or destroys any part of the physical structure of your home, this portion of your policy would help pay for repairs or rebuilding.
Personal property coverage: This covers your belongings inside the home, such as furniture, clothing, electronics, and other personal items. If these are damaged or destroyed by fire, your policy would help compensate you for their value, either at actual cash value (which accounts for depreciation) or replacement cost (which doesn’t factor in depreciation), depending on your policy.
Detached structures: If you have other structures on your property, like a garage, shed, or fence, these are typically covered under a standard homeowners policy if they’re damaged or destroyed by fire.
Loss of use or additional living expenses: If a fire makes your home uninhabitable, this portion of your policy can help cover the costs of living elsewhere temporarily, such as hotel bills, meals, and other associated expenses.
Liability protection: If someone is injured on your property as a result of the fire, or if you accidentally cause a fire that damages a neighbor’s property, this part of your policy may cover legal or medical expenses.
What doesn’t fire insurance cover?
While fire insurance is designed to provide broad coverage for damages resulting from fires, there are certain exclusions and scenarios that might not be covered by a standard policy. Here are some common limitations:
Intentional fires (arson): If the fire is determined to have been set intentionally by the homeowner or with their knowledge, the insurance will not cover the damages.
Vacancy: If a property has been vacant for a specified period (typically more than 30 days), damages from a fire might not be covered. Insurance companies see vacant properties as higher risks for vandalism, theft, and neglect.
War and nuclear hazard: Damages resulting from war, including undeclared war, civil war, insurrection, rebellion, or revolution, are typically excluded. Similarly, fires resulting from nuclear reactions or radiation are not covered.
Other perils: If a fire results from an earthquake, landslide, power outage, neglect, faulty design or materials, or ordinance of law, insurance may not cover your property.
How is fire insurance changing?
With the increasing frequency and intensity of wildfires, especially in places like California, insurers are reevaluating their risk models. Recently, State Farm stopped offering homeowners insurance entirely in California in early 2023. This has led to much higher premiums from other companies in some areas and even refusal to insure homes in particularly high-risk zones. These changes follow the most destructive wildfire seasons in the state’s history, with 11 of the state’s 20 largest wildfires occurring in the past five years.
This follows a trend in other states across the country ravaged by climate change-induced disasters. For example, in parts of Kentucky ravaged by flooding in 2022, flood insurance rates are set to quadruple. Similarly, insurance companies in Florida and Georgia are raising rates due to more frequent hurricane damage.
Insurance markets are regulated by local and federal governments, and many states and counties are struggling to keep their residents insured. In areas frequently hit by wildfires, state governments are stepping in to ensure homeowners can access affordable fire insurance. This might include offering subsidies, such as through high-risk pools.
What can you do?
If your home is at risk of wildfires, there are actions you can take to lower your insurance rates and help keep your coverage. Installing fire protection devices, like smoke detectors, fire alarms, sprinkler systems, and smart home security systems can all help lower your premiums.
It’s also essential to understand the specifics of your coverage. The more transparent and comprehensive your policy is, the better off you are in the case of a disaster.
Final thoughts
Fire insurance is a vital safety net for homeowners, ensuring that they can rebuild and recover after a devastating fire. As the world changes, so too does the landscape of fire insurance. Homeowners should regularly review their policies, stay informed about changes in the industry, and consider the evolving risks and benefits associated with their property.
A landslide struck Laguna Beach’s Bluebird Canyon in 1978 — smashing cars, buckling streets and destroying 24 homes. An adjacent swath of earth broke loose in 2005, wiping out 12 more homes.
That wasn’t enough to keep Scott Tenney away. In 2010, Tenney and his wife, Mariella Simon, bought a 15-acre hillside ranch near the disaster area despite the listing warning that the property was on the site of an ancient landslide.
“We knew we’d have to do a bit of terracing and retaining, but California is what it is,” Tenney said. “It’s a dynamic place not just culturally, but geologically.”
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From an outside perspective, his might seem a confounding decision. But in Southern California it’s an extremely common one, because that geological diversity, as Tenney calls it, is not just the danger. It’s the allure.
Elevation has long been aspirational here — an escape from the urban flats.
Since settlers first started pouring in from the relative flatness of the East Coast and Midwest, they were captivated by California’s vertiginous landscape. Plein air painters flocked to capture the light of the arroyos. Health seekers sought the clean air of the San Gabriel foothills. Folk rockers found inspiration in Laurel and Topanga canyons. And the moneyed elite started building their houses higher and higher above the basin, forever seeking the trophy perch with the show-off view.
But that perch has always come at the risk of catastrophe. Homes slide into a gulch in Palos Verdes. Fires roar over the Malibu hills. A debris flow kills 23 people and destroys 130 homes in Montecito. Heavy snow traps thousands in the San Bernardino Mountains. And winter storms pull fragile bluffs into a rising sea.
These natural disasters so often occur where the tectonic plates collided and folded into beautiful vistas.
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While other regions may face only one main disaster threat — tornadoes in the Midwest, hurricanes on the Gulf and East coasts — California’s extreme topography brings siege from all sides: the ocean, the trees and brush, the sky above and the ground below. And oftentimes, the most attractive areas are some of the most dangerous.
A land of disasters
More and more people are crowding into the Wildland Urban Interface — the zone of transition between unoccupied land and human development. It’s where properties mingle with undeveloped (and often steep) land, and it’s uniquely susceptible to natural disasters.
According to the U.S. Fire Administration, this area grows by 2 million acres a year as people fan out to the edges of wilderness in search of affordable houses, more space or simply a break from life in the city. And California holds more homes in this dangerous zone than any other state in the country.
And prices keep soaring. It doesn’t matter if a house sits on stilts on the side of a cliff, if it’s a landslide complex slowly sliding toward the sea, or if it’s predicted to be knee-deep in water in a couple of generations — there will always be a buyer.
As Californians flock to risky areas, disasters take a greater toll. Over the last decade, the state has experienced 20 disasters that each cost at least $1 billion in damage from flooding, wildfire and extreme heat. Those 20 alone combined for 783 deaths, according to National Centers for Environmental Information.
According to the real estate listing database Redfin, the trend is nationwide. Last year, the country’s most flood-prone, heat-prone and fire-prone counties all saw more people move in than out. Redfin researcher Sheharyar Bokhari blames one primary factor: the housing affordability crisis.
“L.A. and most other coastal cities are expensive. With remote work becoming more of an option, people are finding they can have more space and finally afford a home if they move to riskier areas,” he said.
Bokhari said another L.A.-specific factor is development — mainly that there’s not as much being built in the city compared to the more rural areas surrounding it.
He points to the Inland Empire, which is typically more affordable than L.A. County. In Riverside County, roughly 600,000 homes face a high risk of wildfire, the most of any of the 306 high-fire-risk counties in the country. Despite that, the county’s population grew by 40,000 over the last two years.
Even if experts — and common sense — say to stay away from certain areas, Bokhari said that won’t likely happen because local governments aren’t incentivized to push people out.
“These disaster-prone cities need revenue and people paying taxes,” he said. “They just claim that they’ll be more resilient and take more safety measures going forward,” he said.
Where else would I go?
Since moving onto the ancient landslide zone, Tenney and his wife founded Bluebird Canyon Farms, which offers workshops and grows food for local markets. His time is split between that and taming the erosion-prone land beneath the farm.
To combat sliding land, Tenney installed a gravity wall, 200 feet long and 9 feet tall, to retain the hillside. In addition to grading the terrain to make the slopes gentler, he added powerful drainage systems and timber-and-concrete cribbing to keep structures in place.
The work never stops, and Tenney keeps a monthly schedule to keep up with tasks. Clear brush in spring. Clean storm drains in September. Inspect terracing every few months.
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“You can run but you can’t hide,” he said, adding that urban centers such as L.A. have their own laundry lists of things to worry about: crime, homelessness, etc. “You won’t experience a wildfire in downtown L.A., but there are plenty of other things to be concerned with.”
Cribbing systems used by Tenney have become commonplace in Portuguese Bend, a small coastal community on the Palos Verdes Peninsula situated on a slow-moving landslide complex. Land moves up to 8 feet a year, and at that rate residents would rather ride the sliding earth toward the sea than sell and move somewhere else.
“I’ll be here until I can’t be here anymore. I’ll slide away with the land,” Claudia Gutierrez told The Times in July after a nearby landslide in Rolling Hills Estates sent a handful of homes careening down a canyon.
You’d think the real estate market in disaster-prone areas would eventually slow down, but there are no deals to be found for house hunters. Longtime residents often stay put post-disaster, and incoming residents consistently pay a premium to live in a scenic, though potentially dangerous, area.
In cities tucked among the foothills of the Verdugo and San Gabriel mountains such as Altadena and La Cañada Flintridge, buying in a high-fire-risk zone might be ever-so-slightly cheaper than buying in a safer place. And buyers pounce.
“My clients try to choose low-fire-risk zones, but if the house in the fire zone is the right price, that is more important,” said Brent Chang of Compass.
When Lisa and Michael McKean got home to Malibu Park from their honeymoon on Nov. 8, 2018, they were so exhausted that they went straight to sleep. The newlyweds didn’t even bother unpacking their suitcases of swimsuits still wet with Caribbean saltwater.
When they woke up, Lisa looked out her back window and saw a 10,000-foot cloud of billowing black smoke.
The Woolsey fire was ravaging the Malibu hills.
The pair grabbed their still-packed suitcases and fled to the Zuma Beach parking lot, where they spent the day surrounded by horses, dogs, cats and neighbors all wondering if their homes would survive.
Theirs, built a year earlier, did not.
“The entire neighborhood burned,” Lisa said. “Everything was black, scorched earth.”
Devastated, the pair spent six months crunching numbers on the cost of rebuilding versus moving. The home that was destroyed had taken four years to approve and three years to build. Their next one could take even longer.
Despite the damage, and despite the ceaseless, inescapable risk of a future fire, they ultimately decided to stay and rebuild.
Cheryl Calvert has lived in Malibu since 1985 and has adapted to a life of fire. To her, the flames are nearly routine.
“Once you make it through your first one, you realize it’s manageable. But you have to plan ahead,” Calvert said.
She keeps two bags packed at all times: one full of goggles and N95 masks and one with dog supplies.
Calvert has experienced plenty of fires during her time in the coastal community, but the worst was the Corral fire in 2007. She was in the driveway as the flames arrived, and she sprayed the corner of her wooden home with a hose as it ignited. Her guesthouse and garage burned down, but the house was saved.
She never considered leaving. Instead, she became more prepared, installing an extra water tank and leaving a pair of shoes by the front door at all times for quick escapes.
“We have to do crazy things, but it’s only crazy for an hour or two every five or 10 years,” she said.
She ran down the usual list of reasons why people move to Malibu: the beautiful landscape, the ocean breeze, the sweeping views. But she said the main reason her and so many of her neighbors stay is because of the community.
“We’re all living near like-minded people who are willing to risk themselves for each other,” she said. “It’s a bunch of hippies. Rich hippies.”
The psychology of staying
A life among the trees, coasts and cliffs is often what lures Californians to disaster-prone communities, but according to experts, the factors that make them stay after a disaster strikes are much more complicated.
Age, race and class can all indicate whether someone is more or less likely to move after experiencing a disaster. For example, Zhen Cong, professor of environmental health sciences at the University of Alabama at Birmingham, found that in the wake of tornados, the middle class might be the most inclined to move since the upper class has the resources to stay and rebuild, while the lower class is often trapped and has no other choice but to stay.
Other relocation factors include the level of damage to the home and whether the person owns the place or rents. But often the most important factor is one that can’t be easily quantified: “People who have a strong sense of place and a strong sense of community are less likely to move,” Cong said.
Ironically, some disasters can even encourage people who otherwise would have left to stay.
In studying post-tornado relocation decisions across the country, Cong found that after a disaster, people increase their disaster preparedness. Part of that includes gathering supplies, but it also includes social engagement: talking to neighbors, sharing information on social media and attending meetings. That engagement, which might not happen if a tornado doesn’t strike, brings a greater sense of community, leading people to stay in that community.
Anamaria Bukvic, an assistant professor at Virginia Tech who studies coastal hazards and population displacement, found that after Hurricane Sandy struck the East Coast in 2012, non-geophysical factors mattered the most in deciding whether to stay or leave. For example, confidence in adapting to future disasters was a more relevant indicator if someone would stay than how close they lived to the ocean.
“The experience of flooding can be emotionally disturbing and traumatic,” Bukvic said. “When facing problems, some people try to avoid them. Others try to resolve them.”
She added that confidence in government plays a major role as well. If a person believes the government responded well to the disaster and will keep them safe during the next disaster, they’re more likely to stay.
That’s something that Malibu Mayor Bruce Silverstein thinks about when overseeing the city’s disaster response plan. Although L.A. County is responsible for physically fighting the fires that plague the area, Malibu has instituted a free service in which residents can request a fire-hardening expert to inspect their property to better prepare them for the next blaze.
The city also outlaws certain types of vegetation susceptible to fire and tries to prevent excessive population growth in order to make evacuation from hills and canyons easier during emergencies. It’s the main reason accessory dwelling units (ADUs) are harder to build in Malibu than L.A.
“Unlike L.A., we don’t have standards that encourage growth,” Silverstein said. “We maintain the status quo and try to keep space between properties so if one catches on fire, it doesn’t extend to the neighbors.”
Michael Dyer, a former Santa Barbara County fire chief who now serves as public safety director for Calabasas, said safety became a top priority for the city after Woolsey, energizing the community into forming multiple volunteer commissions that plan for disaster preparedness.
“We have to provide that service as a government,” Dyer said while monitoring a brush fire in Topanga from his front porch. “No one has forgotten Woolsey yet. And as long as I’m here, we won’t.”
No simple fix
As the climate crisis worsens and the Wildland Urban Interface grows in size, experts are eyeing ways to mitigate the effects of natural disasters to save both the environment and human lives.
L.A. is currently considering an ordinance that would limit development in the Santa Monica Mountains. Using recent wildfires and the Rolling Hills Estates landslide as examples, supporters said the measure would make it harder to build mansions and large hillside homes as a way to limit damage caused by disasters, as well as protect open space and wildlife.
In addition, national insurers such as State Farm and Allstate are no longer selling insurance policies in wildfire-prone areas after a series of catastrophic fires raised premiums. Without insurance, people might be disincentivized from buying and building homes in risky areas.
Redfin is also tinkering with a way to warn people of a home’s potential dangers. The company conducted an experiment in which it showed a listing’s flood risk score to certain users but not others and found that those who were shown the scores were less likely to bid on the home.
The scores have since expanded to show risk for fire, heat, drought and storms.
In the meantime, Californians continue to build, and rebuild, in disaster-prone areas. Lisa and Michael McKean, whose home burned down in 2018, moved back into Malibu Park in 2021.
As neighbors slowly filter back into the neighborhood, they walk around to measure progress and congratulate those who have returned.
“We used to hate cement trucks and jackhammers, but now we celebrate them,” Michael said. “The cheery sound of construction.”
U.S. counties most prone to flooding saw 384,000 more people move into them than out of them over the past two years, a 103% increase during that time. Similar trends are being observed in areas prone to wildfires and excessive heat as home prices have remained generally elevated well after the pandemic-driven homebuying boom.
This is according to data from Redfin, which conducted an analysis of migration patterns sourced from the U.S. Census Bureau cross-referenced with climate risk scores from the First Street Foundation, a research-oriented nonprofit that aims to define the risks of climate change in the U.S.
A combination of an explosion in remote work combined with record-low interest rates during the height of the COVID-19 pandemic has caused people to search for more affordable housing, fewer taxes and warmer weather. This pushed migration into states like Florida, Texas and Arizona, despite the fact that these states carry higher levels of risk from extreme heat, wildfires, drought and storms.
“It’s human nature to focus on current benefits, like waterfront views or a low cost of living, over costs that could rack up in the long run, like property damage or a decrease in property value,” said Redfin Deputy Chief Economist Daryl Fairweather. “It’s also human nature to discount risks that are tough to measure, like climate change.”
While the U.S. continues to reckon with issues related to housing supply, disaster-prone areas generally have a higher pool of available homes, leading to reduced prices. But a lot of building activity is also concentrated in areas associated with higher climate-related risks.
“America is increasingly building housing in places endangered by climate change; more than half (55%) of homes built so far this decade face fire risk, while 45% face drought risk, a separate Redfin analysis found,” the data explained. “By comparison, just 14% of homes built from 1900 to 1959 face fire risk and 37% face drought risk. New homes are also more likely than older homes to face heat and flood risk.”
Homeowners and renters may not have felt the full impact of climate-related disasters since, oftentimes, they do not end up directly paying for renovations or repairs necessitated by an adverse climate event, Fairweather said.
“Insurers and government programs frequently subsidize the cost of rebuilding after storms hit, and mortgages mean homeowners are ceding some risk to lenders—especially if their house goes into foreclosure after a storm,” he explained. “But with natural disasters intensifying and insurers pulling out of disaster-prone areas including Florida and California, Americans may start feeling a greater sense of urgency to mitigate climate dangers—especially if their home’s value is at risk of declining.”
Which, for many Americans surveyed by Redfin, is a concern. According to a survey of roughly 2,000 U.S. residents commissioned by Redfin and conducted by Qualtrics in May and June 2023, nearly half (48.7%) of respondents who moved within the last year believe that an increasing frequency or intensity of climate events like natural disasters, excessive temperatures and/or rising sea levels will “likely impact home values in their area in the next 10 years,” the data said.
Among the top migration destinations most impacted by climate risk, coastal Florida has seen nearly 60,000 more people move in than move out over the past two years. This includes to areas like Lee County, which includes Fort Myers and Cape Coral. The area was most recently ravaged by Hurricane Ian in September.
Meanwhile, inland California, Utah and Arizona have seen their populations swell as the risk of wildfires has only grown, Redfin found.
Recently, prominent insurance companies have exited some of these areas. Farmers Insurance announced earlier this month that it will cease providing coverage in Florida, while State Farm and Allstate are pulling back on types of coverage in California. All the exiting companies have cited climate risk in explaining these decisions.
Some 386,000 U.S. homes today are likely to be at risk of regular flooding by 2050 because of sea-level rise from climate change, under a scenario of unchecked greenhouse gas emissions, according to a new study by Zillow and Climate Central. What’s more, America’s coastal communities have recently built thousands of new homes in these flood-risk zones, contributing to this total.
The nationwide analysis that pairs Zillow’s housing data with Climate Central’s climate-science expertise isolates the number of new homes — and homes overall — in low-lying coastal areas, projecting how many will become exposed to chronic ocean flooding over the coming decades, depending on the choices the world makes around greenhouse-gas pollution today.
The findings are available in an interactive map displaying the flood-risk zones, a sea-level tool detailing the number and value of homes at risk by location, a research report on the threat to new housing and a brief on the dangers to housing stock overall.
Moderate emissions cuts could reduce the number of current homes in at-risk areas to 348,000 by 2050. Because the effects of climate change will worsen over time, the estimates for the year 2100 are far higher: 1.3 million current homes are anticipated to be at risk of regular flooding if emissions are cut moderately, and 2.5 million homes — worth $1.3 trillion — if emissions grow unchecked.
As sea levels rise, the intermittent floods that coastal communities now experience on average once a year are projected to reach farther inland than they do today. Those floods can damage and devalue homes, degrade infrastructure, wash out beaches, and interrupt transportation systems and other aspects of daily life. They also put homeowners, renters and investors in danger of steep personal and financial losses.
“This research suggests that the impact of climate change on the lives and pocketbooks of homeowners is closer than you think. For home buyers over the next few years, the impact of climate change will be felt within the span of their 30-year mortgage,” said Skylar Olsen, Zillow’s director of economic research and outreach. “Without intervention, hundreds of thousands of coastal homes will experience regular flooding and the damage will cost billions.”
Coastal communities will encounter the effects of sea level rise to greatly varying degrees, depending on the local rate of rise, local tides and storms, the potential future development of coastal defenses, the flatness of the landscape and where homes are built within it. Some major coastal cities — including Los Angeles — sit high enough above sea level that the biggest hit — even as far out as 2100 — will be to their beaches.
Others will suffer more far-reaching and damaging effects. About 10 percent of homes in Galveston, Texas, and seven percent in Ocean City, Maryland, are projected to be at risk of at least annual flooding by 2050, if the world makes moderate emissions cuts — numbers that rise to nearly half of the homes in each community by 2100. By the same year, Hoboken, N.J., and Miami Beach, Florida, could see three-quarters or more of their homes at risk of at least annual flooding, if emissions remain unchecked.
What’s more, new homes are still being built at striking rates in areas that face high risks of future flooding. In New Jersey, for example, seven percent of current homes are projected to be in flood-risk zones by 2100, under moderate emissions cuts. But because of ongoing development, 14 percent of the state’s homes built from 2010 through 2017 are in the same high-risk areas.
“The combination of Zillow’s data with Climate Central’s coastal analysis has given us our most detailed picture yet of U.S. homes at risk from rising seas,” said Dr. Benjamin Strauss, CEO and chief scientist of Climate Central. “And we have discovered that many communities are growing faster in areas facing chronic future floods than they are in higher areas. It’s difficult to plan for higher seas if you are busy digging deeper holes.”
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].