High Flood Risk Homes Selling for More than Lower-Risk Homes
While coastal properties have always fetched top dollar, insurance premiums for these locations have surged to historic highs.
During the first quarter of 2021, the median selling price for homes with a high flood risk was $402,010, almost $50,000 more than houses with low flood risks, according to Redfin, which noted the premium paid for waterfront properties hit a record 13.6%. In Q1 2020, the premium was around 10%.
On top of this, home sales in flood-prone areas are also surging with an 18.6% year-on-year increase during 2021’s first quarter, the real estate brokerage reported. Sales of low flood risk homes rose about half that, 9.6%, during the period.
This premium content is locked for
Insurance Coverage Law Center subscribers only.
Start a free trial to enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.
- Access the most current expert analysis and daily developments across jurisdictions
- Solve complex research issues with expert tools and intelligence
- Tap into insurance coverage expert guidance
Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.