FAQ: BEFORE I Make An Offer, Does This Home Need Flood Insurance?
That is an EXCELLENT question, and one that you should answer for YOURSELF! FEMA has changed the flood maps and many homeowners that do not have a mortgage do not know that they are now in a flood plain. So if you are buying a waterfront home, you need to check this out!! Here's how! Go to www.floodsmart.gov. On the home page, on the left menu, click on RESIDENTIAL COVERAGE. On the Residential Coverage page, scroll down and look to the middle right of the page for a RED BOX with the words "One Step Flood Risk Profile. HOW CAN I GET COVERAGE?"
Then:
- type in the address,
- city,
- state, and
- zip.
- Mark Y for residential.
- Mark Primary or Non-Primary Residence.
- Click "GO!"
I remember when our old mortgage company notified us that we had to have flood insurance. SHOCKING! That home sat WAY above the dam and was not in a flood plain when I purchased it. NO home, as far as I know, has EVER had lake water in it in Carolina Cove. What it boiled down to was that a tiny portion of the lot that the home sat on now fell into the flood plain. The way it was explained to me, it would not matter if I had a 200 acre ranch, and my home was at the top of the highest hill. If ANY of the 200 acres was in the flood plain, the mortgage company would be require me to have flood insurance. WOW!
To keep from paying an astronomical rate, we had to have a surveyor come and shoot the elevation of the home to prove that it was NOT in a flood plain.
LAKE LIVINGSTON WATERFRONT BUYERS: Always ask if the seller has an elevation certificate. If not, check the above website to see if the home your are buying is in a flood plain. The above website will give a rate estimate from best case scenario to worst case scenario -- depending on the elevation of the home. The variance can be something like $450-$4,000 per year. You will not be able to get an exact rate without an elevation certificate. You can also ask for a copy of the seller's insurance bill. Believe it or not, NOT EVERYONE carries flood insurance when they are in a flood plain. If they do not have a current policy, then BEWARE because FEMA re-zoned in 2011 and an old policy may have the property in a completely different rate zone!
LAKE LIVINGSTON SELLERS: If your home sits in a flood plain -- and FEMA has made sure that almost every waterfront property does -- you would be wise to have an elevation certificate handy for potential buyers. The elevation number determines the cost of the flood insurance policy. Proving to the buyer that they will not face ridiculous flood insurance rates is a GREAT way to get your house SOLD!
FAQ: BEFORE I Make An Offer, Does This Home Need Flood Insurance?
Comments(16)