Under contract on a Home in Flood Zone A - should I bail on the contract?

[Katie Camargo]

I am under contract on a home that I plan to rent out- numbers look solid, but I just learned that it's in flood zone A. It is lakefront, but I'm wondering if I should bail. Insurance changes the numbers enough that it's less interesting and I'm worried about resale. Wondering if anyone has experience either way with properties in flood zone A? 

[Chris Seveney]

Quote from @Katie Camargo:

I am under contract on a home that I plan to rent out- numbers look solid, but I just learned that it's in flood zone A. It is lakefront, but I'm wondering if I should bail. Insurance changes the numbers enough that it's less interesting and I'm worried about resale. Wondering if anyone has experience either way with properties in flood zone A? 

 I would also look at the property and how it is built. Is it up on stilts but in a flood zone, is the area prone to flooding? 

If the insurance makes the numbers not work then yes walk, but if its more about the risk of being in a flood zone - 1/2 of florida is probably in a flood zone and its all about how comfortable someone is with the risk.