The NerdWallet Smart Money podcast recently released an episode titled The Cost of Climate Change: Protect Your Home From Disaster. The episode focused on how climate change has affected homeowners and renters in terms of protecting properties from natural disasters. The discussion revealed that many homeowners and renters are learning that their insurance policies do not cover damages from certain natural disasters, leaving them underinsured. In many coastal areas of the US where the risk of wildfire and hurricanes is high, homeowners are finding it difficult to secure insurance. The episode also delves into the risks of being underinsured, ways to ensure enough coverage, and why flood insurance is critical even for homeowners who live in areas not known for floods. Additionally, the episode featured an interview with the CEO of First Street Foundation, a nonprofit organization that has developed a tool to help homeowners assess climate-related risks, such as flooding, wildfire, and extreme heat.
The article’s title reflects the main points of the podcast episode, discussing the costs of climate change when it comes to homeownership and how homeowners can protect their homes from disasters caused by climate change. The podcast hosts shared their own experiences and offered explanations to help listeners understand complicated insurance policies. The show went further to highlight some of the strategies that homeowners can employ to assess and protect their homes from potential disaster.
Related Facts
The National Oceanic and Atmospheric Administration (NOAA) reported earlier this year that the US experienced 22 climate and weather-related events that each caused at least a billion dollars in damages.
Less than half of Americans who rent are aware that they can purchase renters insurance.
In 2020 alone, the US reported nearly 100 disaster events that cost the nation an estimated $95 billion.
Key Takeaways
Homeowners and renters should review their insurance policies to ensure they provide adequate coverage against natural disasters.
The standard homeowners policy does not cover flooding, which means that they do not cover rising water. However, they do cover falling water.
Homeowners can use tools like the one developed by First Street Foundation to assess their risks and protect their homes from potential disasters.
Flood insurance is essential, even for homeowners who live in areas not known for floods.
Underinsurance leaves property owners vulnerable in the event of a natural disaster.
Conclusion
The second episode of NerdWallet’s Smart Money podcast provided valuable insights for homeowners and renters who want to protect their homes and assets from natural disasters caused by climate change. Episodes like this are an excellent opportunity to create awareness and educate the public on the best ways to secure homes, belongings and finances against climate change-related risks.
