Home listings on Zillow now include climate risk data amid increasing threats.

• Zillow now offers climate risk data for every for-sale property on First Street.
• Zillow now displays First Street risk scores for flood, fire, wind, air, and heat, as well as estimated risk percentages 15 and 30 years into the future for each for-sale listing.
• A survey by Zillow reveals that over 80% of home buyers now take into account the risk of climate change when making a purchase. The most significant concern for respondents was flood risk, while fire risk came in second.

The estimated insured losses for Hurricane Helene are over $6 billion, but the uninsured losses are significantly higher due to the fact that most homes affected by the storm, particularly in North Carolina, did not have flood insurance.

New risk-assessment technology is designed to help change that for the future.

In North Carolina, many homeowners lack flood insurance because their homes are not located in flood zones designated by the Federal Emergency Management Agency. However, government-backed mortgages mandate flood insurance in these designated areas.

While only 4% of North Carolina homes are located in a FEMA flood zone, First Street, a climate risk firm, estimates that nearly 12% of homes in the state are at flood risk when considering the effects of climate change on property risk scores.

A suite of climate risk data for every for-sale property listed on First Street has just been launched.

"Zillow's chief economist, Skylar Olsen, stated in a release that climate risks are now a crucial element in home buying decisions. The company is now offering property-specific climate data to buyers and sellers to help them make informed decisions. With growing concerns about flooding, extreme temperatures, and wildfires, this tool also helps agents inform their clients about climate risk, insurance, and long-term affordability."

Zillow now displays First Street risk scores for flood, fire, wind, air, and heat, along with estimated risk percentages 15 and 30 years into the future, which are the standard lengths for fixed-rate mortgages.

The severity of rainfall is intensifying due to climate change, which is causing flood risk to rise over time on First Street.

The First Street site can assist homeowners in estimating flood insurance costs and it is recommended that they have flood insurance.

"According to Ed Kearns, chief science officer at First Street, many people believe they are safe from floods if they are not in a FEMA flood zone, but this is not entirely accurate. Heavy rainfall can impact numerous individuals across the country, and the FEMA flood zone designation does not necessarily indicate that this is a risk for you. To help consumers make an informed decision about whether they need flood insurance, First Street has created new flood maps that take this into account."

A survey by Zillow reveals that over 80% of home buyers now take into account the risk of climate change when making a purchase. The most significant concern for respondents was flood risk, while fire risk came in second.

According to a Zillow analysis of August listings, more homes nationwide had a major climate risk than those listed for sale five years ago. This was true across all five climate risk categories. Specifically, for new listings in August, 16.7% are at major wildfire risk and 12.8% show a major risk of flooding, according to Zillow and First Street data.

The increasing influence of climate scores on consumer purchasing decisions will likely lead to a rise in the cost of insurance, which will in turn decrease home values in affected areas.

Kearns stated that the most direct impact of having scores on homes that quantify risk would be on real estate values, but a significant portion of this would be due to the amount of insurance required to cover the home.