**New Technology Aims to Revolutionize Flood Insurance with Personalized Risk Assessments**
The devastating impact of Hurricane Helene has left many homeowners reeling, with estimated insured losses reaching a staggering $6 billion. However, the true extent of the damage is far greater, as the majority of affected homes lacked flood insurance. This disparity highlights a critical issue: many homeowners are unaware of their flood risk, and traditional flood zone designations are no longer sufficient.
In response, innovative risk-assessment technology is being developed to provide personalized flood risk scores for every home. Climate risk firm First Street has partnered with Zillow to integrate its property risk scores into every for-sale listing, empowering buyers and sellers to make informed decisions.
The data reveals a stark reality: nearly 12% of North Carolina homes are at flood risk, despite only 4% being located in designated FEMA flood zones. By incorporating the effects of climate change, First Street’s risk scores provide a more accurate picture of a property’s vulnerability to flooding, wildfires, extreme temperatures, and other climate-related hazards.
Each Zillow listing now displays First Street risk scores, including flood, fire, wind, air, and heat risks, as well as projected risk levels 15 and 30 years into the future. This information enables homeowners to assess their insurance needs and make informed decisions about their investment.
The impact of climate risk on home values is already being felt, with more than 80% of buyers considering climate risk when purchasing a home. As consumers increasingly prioritize climate resilience, the cost of insurance will become a critical factor in home prices, potentially leading to decreased values in high-risk areas.
By providing transparent, property-specific climate data, this innovative technology aims to revolutionize the way we approach flood insurance and climate risk management, ultimately protecting homeowners and communities from the unpredictable forces of nature.
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