Could a Climate Risk Score Hurt Your Home Sale?

There may be a number attached to your home that you have never seen, cannot control, and that could reduce what you get when you sell. Known as a climate risk score, it is now at the center of multiple lawsuits, and it matters a great deal for flood-exposed areas like Staten Island and coastal Brooklyn. According to the Daily Caller, BizPac Review, and Bloomberg, the modeling company First Street is facing a Nebraska Attorney General lawsuit and a separate suit from a New York couple. Here is what the score is, both sides of the fight, and what homeowners can do.

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Could a climate risk score hurt your home sale?

It can, which is why it is drawing lawsuits. A climate risk score is a private, property-level rating of flood, fire, wind, heat, and air-quality risk that now appears on major platforms. In one documented case cited in a July 2026 report, a $6.2 million property that FEMA rated minimal risk received a 9-out-of-10 flood score from First Street, after which showings declined, the home sat longer, and the seller cut the price. A separate New York couple sued First Street and Zillow, alleging a high flood-risk score was false and misleading and cost them money, they bought for $1.1 million and sold for under $1 million. So yes, an alarming score can affect buyer behavior and price.

What is a climate risk score and where does it come from?

The scores at the center of this story come from a company called First Street, which assigns property-level flood, fire, wind, heat, and air-quality scores. Those scores appear on major platforms including Zillow, Redfin, Realtor.com, and Homes.com, which is why buyers routinely see them while browsing. The important thing to understand is that these are private, forward-looking predictive models, not FEMA's official regulatory flood determinations. That distinction is exactly what the current legal fight is about, because a private model can reach a very different conclusion than the government's flood maps for the same property.

Why is First Street being sued over its flood scores?

Two cases are driving the news. In late August, the Nebraska Attorney General filed a lawsuit against First Street, and separately, a New York couple sued First Street and Zillow in state court. The core complaint from critics, including several state officials, is that the scores are generated by a private company using predictive models, can directly contradict FEMA's determinations, and offer homeowners little or no formal way to appeal. When a score labels a home high-risk and the owner has no clear path to correct it, the argument goes, it can unfairly depress the value of that home. The suits test whether a predictive score can be treated as false or misleading.

Are climate risk scores accurate?

There is a real case on both sides, which is why this is a genuine debate rather than a clear villain. Critics point to examples where a First Street score sharply contradicts FEMA and note there is little formal way to appeal. But supporters make a serious counterpoint: roughly 80 percent of buyers say they want climate risk information before purchasing, FEMA's flood maps are widely considered outdated, and a significant share of flood claims actually occur outside official high-risk zones. By that logic, a private score may in many cases be more current or complete than FEMA's map. First Street says it stands by its data, reviews complaints, corrects genuine errors, and notes that a score is a forecast, not a statement of verifiable fact.

What can homeowners do about an inflated climate score?

Facts and documentation are your best response to an alarming score. First, look up your home's score on Zillow before a buyer does, so you are never caught off guard. Second, if it appears overstated, gather your FEMA flood-zone determination and an elevation certificate. Third, obtain an actual flood insurance quote so you can show buyers the real annual cost rather than leaving them to imagine the worst. Fourth, document that the home has not flooded, and file a correction directly with First Street if the score is genuinely wrong. Walking a buyer through real paperwork is far more persuasive than an unexplained number on a listing page.

Why does this matter for Staten Island and Brooklyn sellers?

Because much of Staten Island and coastal Brooklyn sits in or near flood zones, and many of those homes now carry elevated climate scores. That means a Staten Island or Brooklyn seller is more likely than most to have a high number appear on their listing, potentially cooling buyer interest before anyone even tours. The practical takeaway is to get ahead of it: check your score, assemble your FEMA determination, elevation certificate, and a real insurance quote, and be ready to tell the accurate story. If you are planning to sell a flood-zone home and want help getting the documentation and messaging right, that is a conversation worth having early.

Questions about how this affects your home in Staten Island or Brooklyn? Work with Joseph Ranola, or text or call (917) 905-2541. New episodes of Daily Tesla News break down the NYC real estate stories that move the market.