Extreme weather events are either making insurance companies less willing to issue policies to homeowners in high-risk areas around the country, making it harder for homeowners to afford high premiums associated with this policies, or both, according to a new report conducted by First Street and reported by Axios.
Missed payments, loan defaults, and foreclosures affect the entire pool of homeowners with mortgages, not just those that live in high-risk areas.
The report found that “climate-driven foreclosures” could cost upwards of $5.36 billion annually by 2035, accounting for 30 percent of all foreclosure losses. Flooding is the “leading climate driver of foreclosure risk,” according to the report, but other weather events like hurricanes also contribute to these numbers.
When insurers raise prices to cover these loses, it makes it difficult or impossible for homeowners to keep their policy, putting their home in jeopardy.
One way to hedge against the increasing threat of severe weather events is by building stronger, more resilient homes that can better withstand nature’s forces. Innovative building materials like spray foam insulation not only make a home more comfortable and energy-efficient, but it also provides secondary structural benefits to the integrity of a home. When used on the underside of a roof deck in an unvented attic system, spray foam helps to unify and solidify the roof to a house, providing unparalleled wind uplift protection. It also increases your home’s raking strength, which when applied the walls of a home, can better withstand heavy wind and storms.
In the realm of flood preparedness, closed-cell spray foam insulation emerges as an exceptionally effective preventative measure. FEMA has designated closed-cell spray foam insulation as the only acceptable insulation material resistant to floodwater damage. Other types of insulation may have to be thrown out after coming into contact with floodwaters and excessive moisture. However, closed-cell spray foam insulation does not retain water, reducing the risk of mold and mildew development. Data from a case study showed it can simply be washed off before allowing the rest of the home to dry out. Using closed-cell spray foam can minimize repair time and get you back into your home faster.
The IBE has worked with state government leaders across the country to improve public policy related to building materials and construction methods that lower home insurance rates and increase overall resiliency. Taking proactive measures to mitigate risk is a critical step to ensure homeowners can live in stronger, more energy efficient houses at affordable prices.