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. 

Planning to move to a disaster-prone dream locale?

 A small but growing number of people are taking climate change into account when choosing where to live. Armed with climate studies, movers can identify locations that are less likely to experience extreme weather events, such as wildfires, drought and flooding. 

Because they are older, retirees are particularly at risk during climate-induced disasters.

"Extreme weather can be particularly dangerous, and even deadly, for the elderly, who are more likely to have chronic medical conditions and disabilities, according to numerous studies."

"Three-quarters of residents who died in the 2018 Camp fire, which destroyed the Northern California community of Paradise, were 65 and older. Well over half of the record-high 323 people who died from heat-related causes in Arizona’s Maricopa County in 2020 were at least 50. And two-thirds of the people who died in Florida during Hurricane Ian in September were 60 and older."

Resources are available to assess the climate risk of your current home or places you are considering moving to for work or retirement.

The National Oceanic and Atmospheric Administration’s Climate.gov provides data on floods, wildfires, drought, wind, disease and other climate hazards.

Current and prospective buyers can check out specific properties. "Risk Factor provides data on anticipated wildfire, flooding and extreme heat risks for 145 million properties in the United States over the next 30 years."

"Each property is ranked for each type of risk on a scale from 1 (minimal) to 10 (extreme). The online tool provides a percentage likelihood of the risk occurring over time — for example, that floodwaters could reach your house in the next five or 10 years or that the community could experience a certain number of 100-degree days. (ClimateCheck also provides property-specific risk data on heat, drought, fire, flood and storm.)"

Some real estate agencies provide climate risk projections.  First Street Foundation, the nonprofit that developed Risk Factor,is useful to current homeowners as well as prospective buyers. Once you know your current risk you can take action to minimize the risk from climate-related disasters. 

Buyers who choose to move to a risky area should first explore the costs of hurricane windows, flame-resistant roofs, energy-efficient air-conditioning, home elevation and repairs from wind damage or flooding.

Before buying, "ask several insurance companies about the cost and availability of homeowners’ coverage. Premiums are rising considerably in communities prone to wildfires, hurricanes or flooding, and many insurers are not renewing policies, limiting coverage or pulling out of high-risk markets."

Source:‘Do You Really Want to Rebuild at 80?’ Rethinking Where to Retire.

By Susan B. Garland, New York Times

Published Nov. 18, 2022Updated Nov. 22, 2022

 

Wildfire aftermath:

 

 

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.

 

Homeowner's Insurance Rates Going Up due to Climate Change-related disasters

 Surprised by increases in your HO insurance?

Even for property owners who have never filed a homeowner’s insurance claim, the premium will be likely go up for 2021 due to an increase in the frequency and severity of natural catastrophes and their resulting insurance claims across the US for the years 2017-2020. In short, losses have increased faster than the capital base of the insurance industry and the industry is taking steps to make sure that it is solvent and able to pay all of the claims which have and which will arise.

2020 was a record-breaking year for hurricanes and wildfires, both aggravated by climate change. Expect more of the same next year and in the coming decades as world leaders, and the U.S. in particular, have failed to reduce carbon emissions.

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/ 

Homeowner's Insurance Resource

Time to review your current HO policy, especially if you've made renovations to your home or condo. If you have children going to college away from home, their possessions are usually covered by standard HO policies.


Reminders:

• Make sure your home valuation report is up to date
• Consider full-replacement cost coverage if you live in a high-risk area
• Find out exactly what your policy covers before purchasing it
• Consider add-on coverages for flood & earthquake-prone areas

There are some new "kids on the block." Have you ever heard of Lemondade, Hippo Home, Young Alfred? Learn about these options at:
https://www.consumersadvocate.org/home-insurance

What you need to know about dealing with disasters

"We all hope disaster won’t strike, but statistics show that most U.S. residents live in areas at risk for floods, earthquakes, hurricanes or other natural disasters. While you might not be able to avoid a disaster, you can reduce your financial risk by taking steps to insure yourself properly and by understanding how FEMA assistance can help, and where it could fall short."

"Consumer Action’s new Disaster Coverage educational module helps prepare homeowners and renters for the possibility that their home and possessions could be damaged or destroyed and that they could be displaced if their home becomes inhabitable."

In Homeowners and Renters Insurance: What you need to know before and after a natural disaster, readers learn which disaster losses are—and are not—covered under a standard homeowners or renters insurance policy, how to make sure they are adequately insured, what steps to take to recover their losses after disaster strikes, and what their options are if their insurance falls short.
https://www.consumer-action.org/modules/articles/disaster_insurance

In FEMA Spells Disaster Relief for Homeowners and Renters, readers learn about the types of FEMA assistance available, program eligibility and the application process. The publication also highlights the limitations of FEMA assistance and stresses the importance of purchasing adequate personal insurance coverage.
https://www.consumer-action.org/modules/articles/fema_assistance

"Consumer Action empowers low- and moderate-income and limited-English-speaking consumers nationwide to financially prosper through education and advocacy."
 
For more information about Consumer Action email info@consumer-action.org or call 800-999-7981.

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.

Earthquake Safety

Besides the obvious safety concerns, earthquakes pose major financial risks if you don't have earthquake insurance on your house. Homeowners insurance specifically excludes damage from earthquakes. Check out "earthquake" on this blog for specific insurance info and read: "Putting down roots in earthquake country" available at:
http://ussc.utah.gov/putting_down_roots.html

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.

Common Holes in Homeowners Insurance Coverage

As a follow-up to August's FPW program on insurance, this article points out that most homeowners have less coverage than they assume. Read this and follow up with your insurance company. For most Americans their house is their largest single financial asset. "Many homeowners are not aware of major gaps in their insurance coverage, according to a MetLife survey. Most policies, for example, do not cover earthquake damage, upgrades to undamaged parts of a house that are required by building codes or the full cost of rebuilding after a fire." "Earthquakes, unexpected deductibles, and flooding are just a few of the costs your homeowners policy might not cover. But if you're like most Americans, you probably don't realize it. According to the MetLife Auto & Home Insurance Literacy Survey, many homeowners are clueless about the ins and outs of their policies, which means they could easily end up paying a lot more than they expected after damage to their home." Don't wait until you suffer a loss to find out it's not covered.  http://money.usnews.com/money/personal-finance/articles/2012/08/15/beware-of-these-common-holes-in-homeowners-insurance-coverage