It is an issues that buyers and sellers need to be aware of.Its great to live some place with a nice beach or coastal views, but if a 500 yr storm destroys that home, who should pay? Not government. So either home owner takes the loss or homeowner pays the cost of insurance for that risk. And without insurance can you get a mortgage? So only the wealthy can afford to live such places.No one wants to pay the bills. But why should taxpayers pay them?But then should this kind of thinking extend to earthquakes, tornadoes, brush and forest fires, tsunamis, global warming, etc, etc.?Choose your risk. Most of us have one or more of them.Private insurance companies will cover the risk, but they need premiums to cover their losses. That means owners pay a share of the cost of these risks. But if they become unaffordable, does that mean large regions of the US are abandoned? Converted to parks or wildlife refuges? Or assigned low investment uses like tree farms or pasture lands?Yes, changes in risk perceptions and resulting changes in insurance costs can reduce the resale value of a property. Some may become unsaleable. But that is part of real estate. Caveat emptor!!It's an issue that should be discussed.
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