When Hurricane Melissa hit Jamaica, Jordan Senior’s rental cabin in Treasure Beach, bringing in $30,000 annually, was submerged. Multiple properties he was building with $60,000 in savings were set back, including a villa that lost its roof and suffered major structural damage.

Senior’s Cashaw Cabin, typically booked for 15-20 nights monthly, charges $115-$150 per night. Hurricane Melissa struck just before the Caribbean’s peak season, potentially delaying Senior’s reopening until January, wiping out months of earnings.

Climate change poses costly risks for landlords globally. In 2023, the U.S. experienced 28 climate disasters costing over $1 billion each. Properties in high-risk areas like Senior’s cabin are valued hundreds of billions of dollars more than they should be due to undervaluation of long-term costs.

Landlords need protective measures like flood insurance with caps on coverage, hurricane deductibles ranging from 1%-5% of insured value, and landlord insurance covering loss of rental income, flood damage, and windstorm coverage. Conduct climate risk assessments before investing in rental properties to minimize exposure.

Senior is draining his savings for repairs, highlighting the need for an emergency fund covering 3-6 months of rental income and a separate fund for major repairs. Diversifying rental properties across climate-vulnerable regions can help spread risk and balance potential losses from climate events.

Ensure protection with landlord insurance addressing rental property risks like loss of rental income, flood damage, and windstorm coverage. Conduct thorough climate risk assessments before investing in rental properties. Diversify rental properties across regions to spread risk and balance potential losses from climate events.

Read more at Yahoo Finance: Landlord questions AirBnB after hurricane leaves beachfront property uninhabitable