As Flood Plains Expand, Sellers Continue to Hide Risk from Residents

Business News/Analysis, Federal Agency/Executive Branch, Opinions, Policy

October 20, 2020

Print This Article Share it With Friends

by Amy Lupica (Our Daily Planet) Across the nation, 15 million residences are at high risk of flooding within the next 30 years, and most homeowners and renters aren’t aware of this risk.

Only about half of states require any kind of disclosure when it comes to flood risk and those that do offer information do so in confusing ways.
Flooding is one of the most deadly and destructive natural disasters and as floods and powerful storms increase due to climate change, it’s more important than ever that people understand the potential risks their properties face.

Why This Matters: The remnants of flooding, and the financial or physical inability to repair the damage, can impact people’s health, financial stability, access to education, and access to clean water. The lack of transparency by sellers, landlords, and governments puts lives in jeopardy, and like all impacts of climate change, low-income communities and people of color are especially affected.

…

A Government Shortfall: So far 21 states have no law requiring disclosure of flood risk even if the home has flooded in the past. Areas at risk of flooding are growing larger and encompass more urban spaces than before.

…

Freddie Mac found that homes outside of official flood plains, which weren’t required to be insured, were more likely to default on mortgages after Hurricane Harvey than homes in the official floodplain.

Currently, residents who learn that their home is in a flood plain after signing a contract are often trapped in expensive, required flood insurance plans.

…

For those who rent, existing tenant protection may not cover them.

…

Without comprehensive and aggressive action to fight climate change and warming ocean temperatures, no amount of warnings will be able to prevent devastating harm to the growing number of floodplain residents. READ MORE

Fannie and Freddie Mortgages Vastly Underestimate Flooding Risks (Our Daily Planet)

FEMA Will Take Climate Change Into Account In Flood Insurance Overhaul (Our Daily Planet)

The price of living near the shore is already high. It’s about to go through the roof. (Washington Post)

Excerpt from Washington Post: As FEMA prepares to remove subsidies from its flood insurance, a new assessment says 8 million homeowners in landlocked states are at risk of serious flooding because of climate change

…

On Friday, the Federal Emergency Management Agency will incorporate climate risk into the cost of flood insurance for the first time, dramatically increasing the price for some new home buyers. Next April, most current policyholders will see their premiums go up and continue to rise by 18 percent per year for the next 20 years.

The price hike under a new assessment, Risk Rating 2.0, will more accurately reflect the threat of flooding in a changing climate, federal officials say.

Most homeowners will see modest increases starting at $120 per year in addition to what they already pay, and a few will see their insurance costs decrease. But wealthy customers with high-value homes will see their costs skyrocket by as much as $14,400 for one year. About 3,200 property owners — mostly in Florida, Texas, New Jersey and New York — fall in that category.

Like the climate threat, the cost increase will reach far beyond the coast.

Homeowners in inland states such as Iowa, Missouri and Nebraska, where creeks, streams and rivers overflow during heavy rains, will also see price increases in their government-backed flood insurance.

Climate change will affect people who weren’t threatened before. New technology that allows analysts to study the environs around each home led to a stunning find: 6 million homes in states such as Utah, Idaho, Vermont and Tennessee that didn’t require insurance because they were thought to be safe from flooding are actually at risk because of climate change. READ MORE

About Author

Scroll Back To Top More Articles From Author

jivancic

Scroll Back To Top

Comments are closed.

Advanced BioFuels USA