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BiggerPockets Real Estate Podcast

895: BiggerNews: How Climate is Exploding Insurance, Building, and Investing Costs w/Natalie Ambrosio Preudhomme

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 16 February 2024

⏱️ 43 minutes

🧾️ Download transcript

Summary

The climate crisis is already here, and the cost of real estate is being directly affected. Insurance premiums are skyrocketing, costs to build are rising, and your reserves need to be bigger than ever. Tornados, hurricanes, fires, and floods threaten your properties, so how do you protect yourself from what’s coming? Where are the least-affected areas, and how do you ensure your rental property portfolio doesn’t go up in flames or get drowned out by the rising tide? Moody’s Analytics’s Natalie Ambrosio Preudhomme is on this BiggerNews to talk about one thing—climate catastrophes. Natalie spends her days looking through data on the financial implications of climate risk and how she can better help real estate investors navigate around or outright avoid the most devastating effects to come. Plus, researching what you can do to prevent property damage if you're in an at-risk area.  Natalie outlines how climate risk will force more local governments to increase regulations (and fines), the safest investing areas in the country, and whether the sky-high insurance premiums can continue. Whether you’ve got rentals, commercial real estate, or just own your own home, these risks WILL affect you, so pay close attention to Natalie’s insight. In This Episode We Cover: The financial implications of severe climate risk that go FAR beyond just rising insurance prices  New government-enforced emission regulations that will affect businesses  The areas of the country that will be least exposed to rising climate risk  The skyrocketing price of insurance premiums and why Natalie says something’s got to give Could the cost of construction rise as new energy-efficient homes become the standard? And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Join BiggerPockets for FREE Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast Grab Dave’s New Book, “Real Estate by the Numbers” Hear Dave on The “On the Market” Podcast Watch Dave on the “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram BiggerPockets' Instagram Climate Change: Why Top Investors Are Paying Attention (and You Should Too) Stay Up-to-Date with Moody’s CRE Research Connect with Natalie Natalie's LinkedIn Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-895 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

Hey everyone, welcome to the BiggerPockets Real Estate Show and this episode of Bigger News.

0:05.8

I'm going to be your host today, Dave Meyer, and today we're going to be talking to Natalie Ambrosio Prudome, who is a commercial real estate expert at Moody's Analytics, and she is an associate director of research there, and she focuses specifically on climate.

0:24.0

And we wanted to bring on Natalie today to this show because climate has been impacting

0:29.9

real estate investors forever, but particularly over the last couple of years.

0:35.0

I don't know if you all have heard, but I've been talking to friends in California and in Florida

0:39.8

and insurance costs are going through the roof.

0:42.9

Some insurance companies are just leaving those states altogether.

0:46.3

I've personally been dealing with this a lot in Colorado,

0:49.6

where there are wildfires.

0:50.9

It's been really difficult to even get insurance.

0:54.0

So we're going to bring on Natalie today to share some data and information with us all that

0:58.3

can help you make more informed decisions as an investor. And I mentioned earlier that Natalie is an expert

1:05.3

in commercial real estate.

1:06.4

And I think that's important to note

1:08.0

because this type of data about which places might

1:12.3

see floods or which places are going to see insurance

1:14.9

premiums increase the most are things that the big investors like big

1:19.3

institutional investors like Black Rock and some big commercial reats, they're all looking at this data and so I think for us as smaller, you know, I'm just generalizing most of the people listen to the show are residential investors and I think the people who listen to the show are residential investors.

1:33.6

And I think the people who listen to the show, no matter how big or small you are, as an investor,

1:38.2

you should be looking at this data to help you make decisions.

1:41.8

One, about the cost benefit analysis

1:44.4

of any risk mitigation strategies

...

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