Hi, Folks! They did it again - Congress Kicked the Can down the road once more, this time it was FLOOD INSURANCE!! "What's THAT?" you say? Doesn't it just apply to places like Houston, or New Orleans or Florida where they have massive hurricanes and such? Well, HELL NO!!! It's actually required wherever a home is in the 100 Year Flood Plain! "WHAT THE HELL IS THAT?" you ask? The 100 Year Flood Plain is ANYWHERE that the Army Corps of Engineers has determined that is likely to flood once every 100 years - and that could be just anywhere!
When I started by Real Estate Career in Conroe, Texas many moons ago (and I mean MUCHO!) I worked for East Texas Land Company, and we sold tracks of land, some of which was in the Flood Plain, and some in the Flood Way (that's even WORSE!!!). Down the street and around the corner from our office was a fairly large new subdivison that had been built near the river, and built on the OLD riverbed. We has a hellacious hurricane that totall saturated the area, and almost ALL of those homes where totally or partially under water - so sad! And most did not have coverage from the National Flood Insurance Program, something that wouldn't happen today as Mortgage Companies pay a LOT more attention to these details now than years ago!
So how does that affect YOU and YOUR FAMILY? Well, there are a few things to consider, both practical and political. Practically, you MUST ask your Homeowners Insurance Agent if the home that you are buying is anywhere NEAR the 100 Year Flood Plain, as it MOVES from time to time and you need to know how close. Flood Insurance is not cheap, and even though it is subsidised by the Federal Government if it is required on your transaction it could effect your Eligibilty! I have had deals blow up because of late notice of this requirement, and you do not want to have your truck packed and ready to go only to find out that you don't qualify anymore!! And even if it's not required NOW, you want to see if that cute little creek down the street and around the corner could ever be a threat to your home or your pocketbook - I'm just sayin'!
Politically Flood Insurance is a MONSTER, as evidence by Congress kicking the can again! Premiums for the NFIP need to be TEN TIMES what they are currently in order to properly fund the risk - yes, that meand that TAXES are paying 9/10 of the actual cost, and one day Mr. Taxpayer may not want to fund this anymore, leaving YOU holding the bag! Not a pretty thought!
You can go to to find more information and a lot more about buying a home - and you can even see my pretty picture there! If you have any questions just leave them below and we will promptly respond. Experience Counts, and we have had a LOT of it!