More and more homeowners are arming themselves against water damage
Survey research among flooded households in Limburg in 2021 shows that a combination of measures, such as installing water-resistant barriers in front of the house, placing electrical appliances higher, and building with water-resistant materials, like a tiled floor, can reduce home damage by 30% to 40%. This is equivalent to about €11,000 to €15,000 in avoided damage.
More and more households are taking such measures, especially when they are well informed about their flood risks and receive timely warnings. "Awareness and access to reliable information are crucial drivers for action," explains Endendijk. "Yet factors such as financial concerns, strong confidence in dike protection and unclear information sometimes still play an hindering role. Moreover, homeowners often find flood protection ineffective after extreme damage (more than 60% of home value), after which they are more likely to move."
Increased uncertainty and risks for households and banks
The increase in flood risks has direct implications for the financial sector, especially mortgage lenders and real estate investors. Floods may not only reduce the market value of homes but can also mean that homeowners are no longer able to afford their mortgages. This creates uncertainty for households and increases risks for banks.
Alignment and cooperation crucial for effectiveness
It is therefore essential to better align flood protection with actual risks so that measures can be used more effectively in a targeted way. It is also crucial that governments and insurers work together to more quickly and transparently arrange compensation. These efforts lead to more stable housing prices and a housing market more resilient to climate change. For banks, climate labels for buildings offer an opportunity to be more transparent about risks and encourage homeowners to adapt their homes. "By providing better information about climate risks and supporting residents in taking measures, banks and governments can together build a climate-resilient living environment," Endendijk said.
Thijs Endendijk will defend his thesis on 29 October.
