The article discusses the challenges of making real estate decisions in an era of climate change, particularly how increased storm severity and changing federal flood maps can affect property values and insurance coverage. The author reflects on personal concerns regarding home equity and potential relocation due to environmental risks. It emphasizes the need for diversifying investments and considering future livability as natural disasters become more commonplace. The piece highlights the psychological and financial implications of these evolving circumstances.
Everything is diversification and risk, prudent investing and delayed gratification. So it was not a surprise a few years ago when my wife started asking open-ended questions about what constitutes smart real estate decision-making as the planet warms and the weather gets more severe.
When the federal government alters its flood maps, it can affect your property values. Insurance companies want out of entire areas, in one fell swoop.
We're not on a flood-prone block, and the apartment we own is pretty well protected from the elements. But could (another) storm of the century render the city unlivable for months?
As a result, our home equity is a decent chunk of our net worth. We have a lot riding on this one home of ours. Too much, maybe.
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