Utahns: Find out which natural disasters your county faces

Homeowners insurance is growing more expensive or hard to find because of natural disasters. The Salt Lake Tribune breaks down which counties have the highest risk for some of the havoc. 

"As wildfires, floods and other natural disasters wreak havoc across the country, insurers are raising premiums or pulling out of some markets altogether because of the risk" writes Megan Banta for The Salt Lake Tribune.   | Dec. 28, 2023

 Wonder why your Homeowners insurance had increased substantially for the past couple of years? 

"Premiums increased an average of 21% from May 2022 to May 2023 across the country and more in Florida and some western states including Utah, according to a report from Policygenius." HO insurance is not only becoming more expensive but also, harder to get. Friends of mine have had their insurance cancelled after a very minor claim. 

According to Banta's research: "Summit County and five other counties in Utah have a “relatively high” risk of wildfire, according to the National Risk Index, part of the Federal Emergency Management Agency. The other 5 counties are: Washington, Iron, Tooele, Salt Lake, and Utah. 

Banta's investigation also identified Utah counties at highest risk for avalanche, earthquake, and landslide. 

Of course, certain areas within a county likely have little or no risk of landslides and avalanches. So consider location when purchasing or renting property. One can still see the massive boulders that crushed a house and killed two people in Rockville. Just this year a house in LaVerkin started to crack and slide into the canyon where it was perched. Within the past decade Santa Clara lost some homes to the same risk of being built on the edge of a cliff for the view. Other counties provide numerous examples of housing being built where it never should have been located.  

The wildfire problem grows each year with our changing, hotter climate and as people build homes at the urban-wildland interface.

Unfortunately, HO insurance doesn't cover loss due to earthquake, flood and earth movement. 

Check out the other posts in this blog on related topics. 

Read the full article at: 

https://www.sltrib.com/news/2023/12/28/heres-where-utahns-face-highest/?utm_source=Iterable&utm_medium=email&utm_campaign=campaign_864285712.28.23%20Top%20Stories 

If you are not a Salt Lake Tribune subscriber and live in Utah... maybe it is time. 

Considering Buying Property in the U.S? Want to know the fire, flood, and heat risks of your current home or vacation property?

Thinking about relocating? Seeking a new location for retirement? Buying a vacation home? Want to know the risks you face in your current location?  

Our changing climate is causing more properties to be at risk of fire, flood, or extreme heat. Risks are increasing across the U.S. The information at this website can help you make a wise decision about investing in a property and show you projections of the increasing future risks. Beyond the potential financial risks, your life and health are affected by where you live.

Find your home's environmental risks from flooding, wildfire or extreme heat. See historic events, current risks, and future projections based on peer-reviewed research from the world's leading climate modelers.

Check out the Risk Factor for a specific address, zip code, city or county at: https://firststreet.org/risk-factor/

A property’s Flood Factor, Fire Factor, and Heat Factor indicate its comprehensive risk from flooding, wildfire, or extreme heat ranging from 1 (minimal) to 10 (extreme).

Risk Factor is a free tool created by the nonprofit First Street Foundation to make it easy to understand risks from a changing environment. Learn more about Risk Factor.

 

Why are Property Insurance Rates Increasing Faster than Inflation?

 Climate-related disasters cost all of us, even when we are not directly affected.

"The National Oceanic and Atmospheric Administration tracks weather-related disasters in the U.S. that cause more than a billion dollars’ worth of damage. According to NOAA:

In the 1980s, the U.S. saw an average of 3 such disasters per year. 

In the 1990s, the average was 5 per year;

In the 20002, it was 6; 

In the 2010s it jumped to 12. (The $ amounts are been adjusted for inflation.) 

In 2020, a record-shattering 22 disasters costing more than a billion dollars struck the country. 

In 2022 we are on pace to match that record, with 15 such disasters by October, including Hurricane Ian, which is likely to prove one of the most expensive storms in American history. 

Adam B. Smith, a NOAA researcher, has written that a disastrous number of disasters “is becoming the new normal.” The rise is partly a function of more people living in vulnerable areas, such as floodplains. But increasingly it’s a function of climate change."

"In the future, the costs may climb steeply or they may climb precipitously. All our infrastructure has been built with the climate of the past in mind. Much of it will have to be rebuilt and then, as the world continues to warm, rebuilt again."

Comment: Now is NOT a good time to buy South Florida real estate... or coastal property anywhere. Climate change/disruption is here now; not sometime in the future. And it is costing all of us in the form of higher property insurance rates (even if we live far from these disasters because insurance companies spread the costs) and because our state and federal taxes help alleviate the damage once it occurs. The tax dollars spent on disasters could provide other services to Americans.

Data source: The New Yorker, Climate Change form A to Z, by Elizabeth Kolbert November 21, 2022.

 

Preparing Financially, Before the Storm Hits... Climate change affects all of us

 "The statistics are striking. Over the past 42 years, an annual average of 7.7 weather-related events caused at least $1 billion each in damage to residences, businesses and municipalities, according to an analysis by the National Oceanic and Atmospheric Administration," according to Washington Post writer Tara Barnard.

"Climate shifts are 'supercharging the increasing frequency and intensity of certain types of extreme weather that lead to billion-dollar disasters,' said Adam Smith, the climate scientist who led the NOAA analysis, 'most notably the vulnerability to drought, lengthening wildfire seasons in the Western states and the potential for extremely heavy rainfall becoming more common in the Eastern states.'"

"Assess risks. A variety of online tools can provide a starting point for assessing your home’s risk to earthly hazards.

Risk Factor has created a user-friendly tool that outlines flood, fire and extreme-heat risks (and soon other perils, including wind) for most homes across the country. Plug in an address, and it drills down to the property level, illustrating potential hazards."

I plugged in  my address and found that "This property faces risk from 2 of 3 environmental factors." There is a minimal risk of flood, minor risk of fire, and moderate heat factor risk for my home.  

Hmmm... Heat factor risk: "A heat wave consisting of 3 or more consecutive days where the “feels like” temperature meets or exceeds the local definition of a “hot day” is an increasing possibility as temperatures rise. The “hot day” temperature for this property is 92ºF. 30 years ago, the likelihood of a 3 day or longer heat wave affecting this property was 17%." I can attest to the increase in hot days after living in the same house for 30 years. Surrounded by trees we used to get by without air conditioning but no more as the temps flirt with 100 degrees far more than in the past. and the prospects for the future are for grim, hot summers. 

Risk Factor (https://riskfactor.com/) is a fascinating tool with lots of information about your own home to help you prepare for a hotter future with more climate-related natural disasters. Check it out!

"The United States Geological Survey has hazard maps for earthquakes, while the Federal Emergency Management Agency and the National Flood Insurance Program maintain flood maps (which also determine whether a home with a federally backed mortgage is required to have flood insurance). The flood program has recently overhauled its rating methodology, called Risk Rating 2.0, but you’ll have to contact a flood insurance agent who can share more about your property’s unique risk, said Jeremy Edwards, a FEMA spokesman."

"Mitigate potential damage. Once you have a better idea of the risks, there may be things you can do to minimize damage if a flood or fire strike. The costs of mitigation will vary, but it may reduce your insurance premiums."

"Evaluate insurance needs. The insurance market varies greatly by locality and the hazards inherent to the area. Standard homeowners’ and renters’ insurance policies do not cover all hazards. Floods and earthquakes always require separate coverage."

 

New Data Reveals Hidden Flood Risk Across America

No one wants one more thing to worry about but... it would be wise to check out your home's risk for flooding, recognizing that damage from floods is specifically excluded from homeowner's policies. New data on flood risks across the U.S. reveals that the risk of flooding has increased substantially and that many homes at risk of flooding are not included in flood maps. 

"Across much of the United States, the flood risk is far greater than government estimates show, new calculations suggest, exposing millions of people to a hidden threat — and one that will only grow as climate change worsens."

"That new calculation, which takes into account sea-level rise, rainfall and flooding along smaller creeks not mapped federally, estimates that 14.6 million properties are at risk from what experts call a 100-year flood, far more than the 8.7 million properties shown on federal government flood maps. A 100-year flood is one with a 1 percent chance of striking in any given year." 

"Federal flood maps, managed by the Federal Emergency Management Agency, have long drawn concerns that they underestimate flood risk. Part of the problem is keeping the maps up to date, which is not only costly and labor intensive, but further complicated as climate change has worsened the dangers."

"In addition, FEMA’s maps aren’t designed to account for flooding caused by intense rainfall, a growing problem as the atmosphere warms."

Check out the article and map in The New York Times June 29, 2020 by Christopher Flavelle, Denise Lu, Veronica Penney, Nadja Popovich and John Schwartz  https://www.nytimes.com/interactive/2020/06/29/climate/hidden-flood-risk-maps.html?referringSource=articleShare

Millions of homeowners face flood risks without realizing it, and climate change is making it worse

By 2050, 16.2 million properties will be at ‘substantial risk’ of flooding in a given year, report finds.

And it's not just properties along the coast or near rivers. 

"When Hurricane Harvey struck Southeast Texas in 2017, it provided a real-life stress test of the plans for flood risk in a highly vulnerable region. Southeast Texas failed that test. More than half of the homes engulfed by floodwaters were located outside city- and federally designated 100-year floodplains."

"Nationally, there are at least 6 million households that are unaware they’re living in homes that have a 1 percent chance of flooding in each year — putting them within a '100-year' flood zone. This is nearly 70 percent more homes at substantial risk of flooding than are within the Federal Emergency Management Agency’s Special Flood Hazard Areas, a designation that determines eligibility for the National Flood Insurance Program."

"This count is set to grow substantially in coming decades due to the effects of climate change, including sea level rise, which will make hurricane storm surges more damaging, as well as precipitation extremes."

"The report, from the nonprofit flood research and communications group First Street Foundation, is aimed at leveling the playing field between buyers and sellers, and democratizing specialized flood risk analyses that insurance companies and consulting firms are producing but charge hefty sums to access."

Now, a prospective buyer can see a property’s flood risk score, which First Street calls the “Flood Factor,” along with a map showing flood information, for 142 million properties in the Lower 48 states.

First Street is providing property-level mapping free on its website.

As reported by The Washington Post

https://www.washingtonpost.com/weather/2020/06/29/flood-risk-climate-change/?utm_campaign=wp_post_most&utm_medium=email&utm_source=newsletter&wpisrc=nl_most

Check out your property at: https://www.floodfactor.com/ 

Homeowners Insurance DOES NOT cover floods! (or earthquakes)

Moody's Analytics is forecasting losses of $22 Billion for the impact of hurricane Florence in North Carolina. 
So you think you don't live in a flood area. That's what too many North Carolina residents thought, especially if their mortgage holder didn't require them to have flood insurance. Other homeowners thought that FEMA would reimburse them for their losses from flooding.
Similar to what happened last year with hurricane Harvey in Texas, far too many North Carolina residents are facing financial disaster because they failed to buy supplemental insurance to cover flooding.
Fewer than 10% of residents along the N.C. coast have flood insurance. FEMA grants amount to only a few thousand dollars per household hardly enough to clean up and never more than $33,000 which won't rebuild a house. It's just enough to replace a vehicle. With continued extreme disasters resulting from climate disruption, many of these property owners should NOT rebuild in their current location.
So check your homeowners insurance now.

Is your home adequately insured?

With all the fires raging in the west and memories of floods last year, we are reminded that global climate change is disrupting our patterns of weather. While many people have said that extreme weather that we've experienced is "the new normal," experts say that what we've experienced so far is only the beginning. If you aren't already demanding that our politicians at all levels, acknowledge and address climate disruption, you should be.
In order to protect your property you need to assess the risks from fire and flood (earthquakes are another risk in Utah that are addressed in other blog posts). Having recently spent a week in N. California helping a friend clean up from the aftermath of the Tubbs fire that killed 44 people and destroyed the house her grandparents built, I saw tons (literally) of dry vegetation waiting to turn into disaster. Just a week later, the area where we hiked in Lake County was obliterated by fire, along with many homes lining the road to our hike.
The August 4/5 Wall Street Journal features an article by Leslie Schism & Nicole Friedman: "Learn what your insurance covers before disaster hits." I can't provide a link since you need to be a subscriber, but will summarize:
1. Read your policy! It's important to know what is excluded, like flooding. Flooding is a real danger in Utah, even if you aren't near a stream or river, especially if you are near a hillside that burned in past few years.
2. Live in or near a flood zone? Buy a flood policy through your insurance company or the National Flood Insurance Program.  https://www.fema.gov/national-flood-insurance-program
3. Check out: https://www.floodsmart.gov/
4. Know the maximum your policy will pay. Repair and rebuilding costs spike after a disaster.
5. Increase your coverage after a major improvement.
6. Inventory your possessions and store this info outside your home.
7. Take action to reduce damage & avoid claims: clear defensible space around your property. Can you reduce the potential for flooding with landscaping? What's in your basement and what will you lose if its flooded?

So you think you don't need flood insurance?

Unaware and in Need of Flood Insurance

Just because you don't live next to the ocean or on a river bank doesn't mean your house is safe from flooding as too many Houstonians discovered. For the vast majority of Americans their house is their biggest financial asset and often the bedrock of their retirement plan.

It's time to face the facts of global climate change and take personal action as well as insisting that your legislators take their heads out of the sand and start taking collective action to address global warming. The storms are getting worse and more frequent; we all suffer from climate change denial.
"Millions of U.S. homeowners may not realize they’re at risk of flooding, due to outdated flood plain maps and even less information about dam and levee “failure zones” and urban storm-water hazards like the river running through downtown Miami during Hurricane Irma." Read this valuable article from the Squared Away Blog and ACT on the information! http://squaredawayblog.bc.edu/squared-away/unaware-and-in-need-of-flood-insurance/
P.S. I just called my insurance agent to update and increase our property insurance.

Feb 13 FPW: Earthquakes and Homeowners Insurance

Join us Wednesday February 13 to learn about Homeowners Insurance with a special emphasis on earthquake and flood insurance, both coverages NOT included in standard HO policies. 90% of Utahns live in earthquake country, and unlike California, Utah legislators have not seen fit to recognize the danger and mandate appropriate building codes. Utah may be a dry state but every year serious localized flooding damages property. Join us at 11:30 in the USU Taggart Student Center room 336 (bring your lunch) or at 7 pm in the USU Family Life Center (corner of 500 North and 700 east with easy free parking). The program is free and open to everyone, even men. :) Bring a friend. We will be giving away some products to protect yourself and your belongings when the earthquake strikes (It's not a matter of IF but WHEN) and some personal finance magazines.