Young homeowners expect climate change to damage their homes – report

Young homeowners expect climate change to damage their homes – report | Insurance Business America

Young homeowners expect climate change to damage their homes – report

There is widespread worry about climate change-related extreme weather, especially among young homeowners, according to a new survey by insurtech Policygenius.

The survey found that 72% of young insured homeowners (age 18 to 34) expect their homes to be damaged by extreme weather in the next 30 years, compared to less than half of all adult homeowners. Sixty-four percent of young homeowners believe it is likely they will choose or be forced to move due to climate change-related extreme weather, compared to just 27% of all homeowners.

That disparity increases for young parents, the survey found. Seventy-seven percent of young homeowners who have children under 18 expect to move in the next 30 years due to climate change-related extreme weather, compared to 25% of total non-parents and 15% of parents with children older than 18.

“As natural disasters continue to worsen due to climate change, it’s understandable if younger homeowners are wary of the future,” said Pat Howard, a licensed property and casualty insurance expert at Policygenius. “In 2021, there were 20 climate disasters in the US that each caused over $1 billion in damage.

“That included the unprecedented cold wave in Texas that left many homes without power, and Colorado’s Marshall Fire, which destroyed an entire community. But there are multiple things you can do to protect your family and financial future, including checking to see if you have enough home or flood insurance coverage.”

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The survey also found that many homeowners have already experienced damage due to extreme weather. Nearly a third (31%) of insured homeowners have already sustained home damage from a hurricane, tornado, wildfire, flood or another extreme weather event, while 48% of homeowners know another homeowner who has.

The survey also found that many Americans may be underinsured; 33% of homeowners either don’t believe they have enough insurance for a full rebuild of their homes or aren’t sure if they do. Only 21% of homeowners have purchased flood insurance, even though flood damage isn’t covered by most home insurance policies.

Homeowners in the South are most likely to have seen some form of extreme weather, the survey found. Around 37% of homeowners in the South have seen damage to their house thanks to extreme weather, versus 31% of all homeowners. However, homeowners in the South aren’t more likely to move than other homeowners. More than half of homeowners in the South think it likely their homes will be damaged by climate change-related extreme weather in the next 30 years. However, only 31% said they were likely to move in the next 30 years due to climate change.