How climate risks could affect property taxes in Fla., Calif., and elsewhere

In 2024, there were 27 weather disaster events in the U.S., including the devastating Hurricanes Helene and Milton, “with losses exceeding $1 billion each,” according to the National Centers for Environmental Information.More recently, the ongoing devastating wildfires, which started on Jan.7, continue to ravage Southern California—and last week, a historic snowstorm barreled down on the Southern states, which could face losses of $15 billion to $17 billion due to the storm, according to AccuWeather.The repercussions of climate disasters for homeowners can be catastrophic.

For starters, insurance premiums often rise “in areas with the highest risk of natural disasters such as hurricanes or wildfires,” according to the National Bureau of Economic Research.Furthermore, natural disasters can also affect property taxes, which can be shocking to homeowners, especially as they head into tax season.Daniel Cabrera, founder and CEO of Fire Damage House Buyer, says that natural disasters usually spur property reassessments, which temporarily lower the values of damaged properties while simultaneously reducing homeowners’ taxes.In addition, municipalities might increase property tax rates to compensate for losses during the rebuilding process.“For example, many homeowners in Miami saw their properties reassessed after Hurricane Irma.In areas that were not affected, tax rates were increased to help offset the loss in revenue,” he says.

“In Los Angeles, wildfires similarly create more expensive places with taxes to meet increased funding needs.”However, when a “home is destroyed in a wildfire, the property tax assessments don’t automatically reset to reflect this loss,” Newsweek reports.That means the property’s value “remains unchanged unless the homeowner applies for reassessment.”Homeowners in Los Angeles County who have been affected can apply for property tax disaster relief under certain circumstances, including that the loss estimate is �...