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Finance

Financially Protecting Your Biggest Assets from Climate Change

Published by Wanda Rich

Posted on January 6, 2025

Featured image for article about Finance

In many regions worldwide, climate change has already caused a drastic increase in natural disasters. Forest fires and flooding are more common now than ever. Protecting your personal investments and finances will be a struggle as we anticipate a future with more unpredictable weather patterns and deep societal changes, but no one is going to do it for you. There is growing evidence that governments are going to be overwhelmed by climate change and social upheaval.

Protecting your own finances starts with one of your biggest investments: your home. Your home is your shelter and one of your most valuable assets. It’s also one of the most vulnerable to a changing climate.

1. Enhance the Insurance on Your Home

Homeowners may overestimate the protections their home insurance provides against certain types of damage caused by climate change. For example, water damage protection covers broken pipes but not flooding.

Do some research into the climate risks in your area. In some cases, they may be clear. In others, you may want to do some digging into flood maps or areas at risk of wildfires. Both of these events are anticipated to grow in frequency and increase in scope of destruction. You want to be sure that the insurance policy you have covers you for these risks.

If your home is at risk, make sure you have ample coverage. Even if you do, insurance companies may push back against your claims or give you a lower settlement than you think you deserve. This is where it becomes important to learn about one important topic: what is a public adjuster? A public adjuster is a professional who can help you with your insurance claim. Insurance claims lawyers can also do the work of a public adjuster and, if needed, continue your claim into court if the insurance company refuses to negotiate. Insurance lawyers have expertise in understanding the complexities of your insurance policy as a legally binding contract, and can help guide you to avoid errors in the process which may limit your ability to recover from the loss.

Insurance lawyers are familiar with the industry’s tricks, and they can help you file all the paperwork correctly and on time. If there’s ever a time when you aren’t in the mood to combat an insurance company or sort through complex paperwork, it’s when your home is damaged or even uninhabitable, as there is a lot at stake for you to get back into your home. Consider hiring an insurance lawyer to have an expert on your side who can help you navigate this difficult time. It may be your first insurance claim, but for insurance lawyers it is all that they do.

2. Building Materials Matter

Some building materials are more impervious to disaster than others. For example, metal roofs have been known to outlast other homes that succumbed to forest fires. Metal roofs reflect heat away, which can help prevent a fire.

It’s a non-combustible material with a very high melting point. Maintaining your roof means ensuring there’s no debris on it which can catch fire. If you do not have a metal roof, ensure there are no missing shingles, as these can be entry points for embers to get inside your home.

However, a metal roof does not guarantee that your home will survive a forest fire. However, it does provide some added protection.

3. Drainage Matters

Preventing water damage from floods or any other cause is crucial, as the risk of floods is higher than fire damage. One basic step involves insuring there is proper drainage, so you do not have standing bodies of water accumulating near your home.

Ideally, the grade around your home should slope downwards so water runs away from it, not towards it. Drifting mulch or soggy grounds indicates you have a problem on your hands. Try to spot these before the basement floods.

4. Air Conditioners and Eco-Friendly Insulation

Living with climate change also means keeping your home at a safe and comfortable temperature. If your home is old, it may have outdated insulation and windows, which means your home can be drafty in winter and hot in the summer.

Updating the areas of your home where air can potentially escape will help regulate indoor temperatures. If you do not have central air, make sure your air conditioner works properly and is serviced often. Going the eco-friendly route also has the advantage of saving money on your energy bills.