First-time home buyers looking to purchase a home in these areas should factor in the added cost of flood insurance, or other natural disaster insurance premiums
Chicago, IL (PRWEB) November 08, 2014
Peoples Home Equity knows that when it comes to purchasing a home, most people agree, it’s all about location. For natural disaster risk, location is also the main factor according to a November 3rd release by Corelogic, a real estate data analytics company, titled “More Or Less Natural Hazard Risk Than Average: It’s All About Location.”
As told in the release, “in 2013, severe weather caused more than $8 billion in property damage throughout the United States.” Natural disasters are also expected “to increase in both frequency and intensity” with climate change. Lenders like Peoples Home Equity who issue mortgage for properties in these areas currently rely on “insurance to mitigate some of this risk and reduce the losses when natural disasters occur.” First-time home buyers looking to purchase a home in these areas should factor in the added cost of flood insurance, or other natural disaster insurance premiums, including the deductive in the event of a claim. Even areas that have historically been perceived safe from harsh flood damage like New York City have fallen prey to natural disasters like Hurricane Sandy.
Thanks to advances “in spatial and natural hazard sciences” now “it’s possible to pinpoint exactly which properties are exposed to wildfire risk based on the topography and type of ground cover around a home.”
To assist prospect home buyers, “CoreLogic has developed a property-specific natural Hazard Risk Score (HRS) that serves as a reflection of the overall risk of any one disaster, or a likelihood-weighted combination of several natural hazards occurring at the same geographic location.” After reviewing the HRS of properties across the states, Corelogic was not surprised to see that “seven of the riskiest ten markets are in Florida, where there is the risk of wildfires, storm surges, flooding and even sinkholes.” Corelogic finishes with as long as “our country’s population continues to grow, and as long as we like to live along the coasts, our nation’s housing stock will be increasingly susceptible to natural disasters.”
Contact a Peoples Home Equity loan officer today at: 262-563-4026