Economist says climate change is impacting home values and insurance rates in Appalachia
By Tom Martin, Stan Ingold
August 13, 2025 at 12:00 PM EDT
Kentucky has seen more than its fair share of severe weather in recent years. Multiple deadly storms have hit the commonwealth, from tornadoes to severe flooding.
Climate scientists say this kind of weather is happening more often. What was once considered a 100-year storm is now happening every 5 to 10 years.
This is having an impact that is catching some people off guard. Home values are taking a hit because of the increasing cost of homeowners' and flood insurance.
Jeremy Porter is the chief economist at First Street. That is an organization that helps explain the financial impact of the climate on property. In an interview with Eastern Standard, he said, Appalachia is ground zero for increased rainfall, and agencies are not mapping the flooding adequately enough.
“There's not major river channel flooding, there's not coastal storm surge flooding there, so FEMA doesn't really cover the heavy precipitation flooding. What we're seeing in those places are more intense rainfalls and flooding in streams, creeks, smaller waterways that just aren't covered by FEMA zones,” Porter said.
He said this climate change is hurting property value due to the rising price of insurance.
“As they go to the closing table on new home purchases, essentially, they're negotiating the price down to account for that additional cost of home ownership. What that does, in the transaction records, it actually looks like property value loss. We're seeing people buy homes for less because it costs more to maintain and to manage,” Porter said.
Most homeowners' insurance policies cover damages from a tornado; however, flood insurance must be bought separately and is often costly.
Hear more with Jeremy Porter later this week on Eastern Standard on WEKU.
Climate scientists say this kind of weather is happening more often. What was once considered a 100-year storm is now happening every 5 to 10 years.
This is having an impact that is catching some people off guard. Home values are taking a hit because of the increasing cost of homeowners' and flood insurance.
Jeremy Porter is the chief economist at First Street. That is an organization that helps explain the financial impact of the climate on property. In an interview with Eastern Standard, he said, Appalachia is ground zero for increased rainfall, and agencies are not mapping the flooding adequately enough.
“There's not major river channel flooding, there's not coastal storm surge flooding there, so FEMA doesn't really cover the heavy precipitation flooding. What we're seeing in those places are more intense rainfalls and flooding in streams, creeks, smaller waterways that just aren't covered by FEMA zones,” Porter said.
He said this climate change is hurting property value due to the rising price of insurance.
“As they go to the closing table on new home purchases, essentially, they're negotiating the price down to account for that additional cost of home ownership. What that does, in the transaction records, it actually looks like property value loss. We're seeing people buy homes for less because it costs more to maintain and to manage,” Porter said.
Most homeowners' insurance policies cover damages from a tornado; however, flood insurance must be bought separately and is often costly.
Hear more with Jeremy Porter later this week on Eastern Standard on WEKU.