Houses in Flood Zones
THE NEED TO KNOW ON BUYING A
HOME IN A FLOOD ZONE.
Flooding is the most common natural disaster in the United States, and owning a home means, you’re probably at risk for water damage. When buying a home, it’s important to know whether your new home is in a flood zone. Buying a home in a flood zone requires you know what you're dealing with.
Weather Isn’t The Only Cause Of Flooding
Floods can happen anywhere and at any time of the year. However, floods from a rain storm isn't the only way to flood out your home. Your home can be flooded by poor water diversion, busted pipes of even a clogged storm drain can flood your ground floor in a matter of hours.
Know Before You Buy
Find out before you buy if your potential home is in a flood zone, and get a quote on what flood insurance for your home, over the life of your mortgage, will be. Find this ou before you ever put an offer on a home. Talk to your real estate agent, insurance agent, or lender to find out about the property’s flood status before closing. Flood zone disclosure is not mandatory so many homebuyers don’t find out about flood zones until their closing, or even afterwards!
Low Flood Risk Is No Guarantee You Won’t Need Insurance
Even if the risk for flooding is low, most lenders will require their borrowers to pay for flood insurance on the property. Find out if the property you’re looking at is in a flood zone through FEMA.
Homeowners Insurance Rarely Covers Flooding
Having home owners insurance does not always equal flood insurance. Even the best, most expensive homeowners insurance rarely covers flooding. Flood insurance is an individual insurance.
Your Entire Property May Not Be At Risk
Just because your front yard is in a flood zone doesn't mean your back yard is, Freeflood lists the details of each flood designation. Check to see if the entire property is in a flood zone.
You Don’t Always Have A Choice About Not Buying Flood Insurance
You may think you can take the chance and not buy flood insurance, but the federal government is doesn't take chances. Under federal law, flood insurance is mandatory for all federal or federally related financial assistance for the acquisition and/or construction of buildings in high-risk flood areas. This means lenders will make you get the insurance.
Check with your mortgage company to find out if the property you’re considering falls under mandatory flood insurance laws. If the property is in a low-to-moderate risk area, federal law doesn’t require flood insurance
Understand Your Flood Risks When Buying a Home in a Flood Zone
Nearly 20% of all flood insurance claims are in moderate to low-risk areas.
There's a 30 day waiting period for new flood policies unless it’s required to close on a home purchase.
Average flood insurance policy costs more than $600 a year. Properties in high-risk areas can cost more than $10,000 a year.
In high-risk flood areas, there is at least a 1-in-4 chance of flooding during a 30-year mortgage.
From 2007 to 2011 the average residential flood claim amounted to almost $30,000.
Water Damage isn’t the Only thing You Need to Worry About
Flooding may be a bigger expense than just repairing and replacing a home. Being displaced cast money. You may have to find temporary housing, a place for your pets, buy new clothes and more. Make sure you have an inventory of everything you own and the right insurance so you can replace it all later. Smaller claims may come in quicker to help you rebuild your life.