Climate Risk Threatens $11.2 Trillion in Housing Wealth, but Rising Costs Are Forcing Homeowners To Drop Coverage

Nearly 1 in 4 homes in America faces climate risk as wind, floods, and wildfires take their toll, according to new Realtor.com® analysis.In total, $11.2 trillion in residential real estate is exposed to at least one type of severe or extreme weather disaster risk, including storms and wildfires. And homeowners are already footing the bill.Climate-related disasters have already had broad effects nationwide. That includes the Eaton and Palisades wildfires in California last year, which caused total property and capital losses ranging between $76 billion and $131 billion.It also includes more risk in flood zones across the country, as seen recently in Texas. And Tornado Alley is shifting eastward, putting new areas at risk.Homeowners in these high-risk areas already face higher HOA fees and insurance premiums. But increasingly, soaring premiums are forcing some homeowners to drop insurance, exposing them to potential financial ruin in a disaster."Earlier climate risk disclosure is the most direct path to ensuring buyers decide with eyes open—not years later when the costs become impossible to ignore," states the report.The median monthly HOA fees for homes facing severe or extreme cli...