Wildfires in California — and now Long Island. Hurricanes in inland North Carolina. Floods in Connecticut.
No place is safe from sudden, catastrophic weather events.
Center Street, last year. (Photo/Andrew Colabella)
As realtors, KMS Team at Compass highlight the many advantages of life in Westport.
But they advise clients about other things clients may not want to think about.
Like home insurance.
Our KMS friends pass along a recent report from the US Department of Treasury Federal Insurance Office. It says:
- Home insurance is becoming more costly and harder to procure for millions of Americans. The costs of climate-related events pose growing challenges to insurers and their customers alike.
- Average premiums increased 8.7% faster than the rate of inflation from 2018 to 2022. Some premium increases were much larger.
- People living in the top 20% of ZIP codes, with the highest expected annual losses from climate-related perils, paid 82% more than those in the 20% lowest climate-risk ZIP codes.
- Consumers in the highest risk ZIP codes faced 80% higher policy nonrenewal rates than those in the lowest risk ones.
Connecticut is in a high-risk zone:
The good news: While policy non-renewal rates sound ominous, during the study period they affected just 1.6% of policy holders in high risk areas.
As real estate advisors, KMS Team members talk often with insurance professionals. They learn how to avoid insurer obstacles during the selling, buying and closing process.
Tom Ayres and his team from Cross Insurance recently visited the Compass office.
To start, they said, buyers should have a trusted insurance broker run a “CLUE” (Comprehensive Loss Underwriting Exchange). A database can show claims reports, to understand what went on with a home and property over the last 7 years.
This includes loss history on structures near water — for example, claims because of water damage.
Flooding is the most common and costly natural disaster in the United States.
Insurers keep a close eye on water damage. They offer discounts to homeowners for being proactive, taking precautions like installing water leak devices, lightning rods, low temperature alerts, flood venting, sprinkler systems with alerts, and automatic shut-off capabilities.
Flood guidelines will be updated again in November. All homeowners should review the updates with their insurance agent. (The Cross Insurance team believes that coverages and zones will not change too drastically.)
Grove Point flooding. (Photo/John Kantor)
Many homeowners do not have flood insurance. KMS Team emphasizes: Check with your agent!
The second most common concern is the roof.
It’s all about the age, condition, material and shape, KMS says. Those elements impact the overall integrity or eligibility for coverage.
What works in certain parts of the country may not work in another. For example, cedar/wood roofs are okay in Connecticut, but not Colorado. Metal is fine in Vermont, but not Texas.
Shape matters too: peaked, flat, mansard, gambrel, hip, slate?
What kind of roof do you have?
Insurers and inspectors now use “roof scores,” determined through drone photos.
These also help determine replacement costs. If a roof is 15 years old, coverage may include 100% replacement. But as the roof ages, replacement coverage may drop.
Other home and property issues include:
- Electrical system (knob and tube wires, cloth wiring)
- Asbestos (wrapped pipes, insulation, linoleum tiles, etc.)
- Buried oil tank
- Pools that are unfenced, or with a diving board
- Exterior insulation and finishing of the residence.
Renovations are an important insurance topic too. Will the work be minor or major? “Will you raze (or raise) your home?
Renovating and/or raising a home can affect insurance rates.
Coverage rates can vary, based on the use of the home and property. Is it occuped full time? Rented? Or are the owners rarely there?
The best way to keep insurance rates in check, KMS says, is to be proactive. Take steps to remedy aging elements of your home.
And keep in touch with your insurance experts. Let them know if you put on a new roof or add safeguards.
Insurance agencies work with a variety of insurance companies. They can match your home’s condition and needs with the best one.
(“06880” regularly covers Westport’s real estate scene. If you enjoy this — or any other feature on your hyper-local blog — please click here to support our work. Thank you!)
Excellent post! Very informative and well-written—thanks for sharing such valuable insights!