When we first moved here to Scottsdale from the Chicago area, imagine our surprise when our lender told us we needed flood insurance to be able to close on our new construction home. WHAT? Flood insurance in the desert? Are you kidding me?
Well, after the initial shock, we thought about this. The Scottsdale/Phoenix area is surrounded by mountains on all sides, particularly the north section. When it does rain, the water runs down the mountains and has to go somewhere. If you check out the aerial images, you'll see where there are numerous "wash areas" or arroyos which lead directly out of the mountains. While 99% of the time, these are dry, during heavy monsoons or winter rains, these do run heavy and fast.
How do you determine if you need flood insurance?
In our MLS system, we have IMAPP® which reports a variety of information about your Maricopa county property including whether or not it's in a flood zone. It's located at the very bottom of the page and if your lot is in Zone A, you're in a flood zone. Other sources to determine if you're in a flood zone will be your insurance agent or your lender, although the lenders don't normally pull a "flood cert" until you're nearer to actual closing because of the cost involved.
Another place to look is at an aerial image of the area. In this image below, you can see a "wash" running right in the middle of this parcel of land. While not a true indicator nor what the lender will use to determine if you need flood insurance, it may give you an idea.
How much is flood insurance on my Scottsdale home?
It depends on your insurance company and the zoning classification. I've heard quotes from $450/year to over $1000/year.
While the builders and the City of Scottsdale are doing everything possible to divert these run offs and have the areas possibly rezoned, I think we need to remember when people tried to redirect the Mississippi river - the water went back to it's natural flow despite all efforts.
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