Mindful of increasing risks from extreme weather events such as hurricanes, Zillow will combine climate risk scores, interactive maps and insurance information on its home listings, the company announced this morning.
Why it matters: This step gives prospective buyers their first combined look at climate risk information with home insurance recommendations.
- Due in part to climate change-related trends in extreme weather events, such as hurricanes in Florida and California wildfires, the price of home insurance has been increasing in many parts of the country.
Zoom in: The climate risk information will come from the climate risk company First Street. It will include historical data on past climate events that affected the area where a property is located, such as flooding or wildfires.
- It will also have scores on future risks to properties from floods, wildfires, high winds, extreme heat and poor air quality.
- “Climate risks are now a critical factor in home buying decisions,” said Zillow chief economist Skylar Olsen in a statement.
- According to Zillow, more new listings nationwide in August now come with major climate risk than homes listed for sale five years ago, which held true across all the risk categories.
The intrigue: First Street’s announcement comes after the research company spun off a public benefit corporation from its nonprofit First Street Foundation in February.
- Following that, First Street has since taken in at least $46 million in total funding in a Series A round from partners including Galvanize Climate Solutions, Congruent Ventures, Innovation Endeavors and SE Ventures.
- Prior to First Street’s reports and partnerships with real estate listing companies and other providers of property risk information, many property owners, and prospective buyers, had few available insights into the dangers climate change would pose to their investments.
What they’re saying: According to First Street founder and CEO Matthew Eby, Zillow’s climate information will be especially comprehensive compared to its competitors.
- “They are the first to integrate our insurance assessment data,” he told Axios. “Now, when home buyers are searching for their forever home, they will not only see property specific climate risk data, they will see insurance flags to alert them of potential availability or rapid price increase concerns.”