Amidst the wildfires raging across the country, its more important than ever for property owners to be prepared to protect their investment. Natural disasters are unpredictable, but your preparedness shouldn’t be. From the devastating wildfires scorching parts of the country to hurricanes forming offshore, property owners are facing more risks than ever. Here’s what you need to know to safeguard your property, your finances, and your peace of mind.
Wildfires & the Current Real Estate Landscape
Across the U.S., wildfires are spreading and the effects are being felt nationwide. Property values in high-risk areas are fluctuating, insurance premiums are climbing, and in some cases, homeowners are finding out too late that their policies don’t fully cover wildfire damage. While hurricanes and floods have long been major concerns for coastal homeowners, wildfires are proving to be an equally destructive force, displacing families and making it harder to insure and sell properties.
If you haven’t reviewed your insurance policy in a while, now is the time. Many policies require separate riders for wildfire protection, and coverage can lapse without you realizing it.
Step 1: Check Your Insurance—Before You Need It
Insurance isn’t a “set it and forget it” deal. With natural disasters becoming more frequent and severe, insurers are tightening their requirements, raising rates, or even pulling coverage in high-risk areas. If you own property you need to ensure your policy is:
✔ Active – Has your policy expired without you realizing it? Don’t wait until disaster strikes to find out.
✔ Comprehensive – Does your plan explicitly cover wildfires, hurricanes, and floods? If not, you may need additional coverage.
✔ Sufficient – Review your policy limits. If your coverage only pays out a fraction of what it would cost to rebuild, you could be left financially exposed.
Step 2: Strengthen Your Property Against Disaster
Insurance is essential, but prevention is just as important. Here are a few expert-backed ways to minimize damage:
- For Wildfire-Prone Areas: Create a defensible space around your home by clearing dry brush, using fire-resistant building materials, and installing metal mesh screens over vents to prevent ember intrusion.
- For Hurricane Zones: Invest in storm shutters, reinforce your roof, and make sure you have proper drainage around your property.
- For Flood-Prone Areas: Elevate utilities, seal your foundation, and consider installing a sump pump to prevent water damage.
Step 3: Know Your Exit Strategy
If a natural disaster damages your property, what’s next? Have a plan in place, whether that’s rebuilding, selling, or leveraging your equity for repairs. Investors should consider how disaster-prone areas might affect their long-term strategy. Some regions are becoming riskier for flips and rentals due to rising insurance costs and rebuilding challenges.
Owning property is one of the biggest financial commitments you can make, and protecting that investment should be a priority. With wildfires, hurricanes, and other natural disasters becoming more frequent, staying informed and proactive is key. Take the time to review your insurance, reinforce your property, and develop an action plan before a disaster strikes.
When it comes to real estate, preparation is everything. If you have questions about risk management for your investments, now is the time to start the conversation. Stay ahead, stay covered, and stay prepared.
Coastal Equity Group
15 State Street
Charleston, SC 29401
info@coastalequitygroup.com