HOUSING RESILIENCE

CHALLENGES AND BEST PRACTICES

Austin Perez, a senior policy advisor for the National Association of REALTORS®,  explains that real estate markets function best when buyers have accurate information about the total cost of homeownership, including insurance.

“When buyers qualify for mortgages based on subsidized insurance rates, they face significant increases in insurance costs after a disaster,” Perez notes.

This hidden cost leads to buyer’s remorse and market instability.

Perez advocates for making homes safer rather than focusing on affordable insurance.

He suggests that federal and state mitigation grant programs and tax incentives can help reduce the risk and cost of insuring homes.

“Grants and tax incentives for elevating homes above flood levels, installing hurricane-resistant roofs, and community-wide wildfire building standards can help reduce insurance costs.”