Flood Zone

[Brian Walsh]

We are looking at a house (a long term hold) to purchase. I found out that it is in a flood zone. Would you buy it ? I would appreciate any feedback against of for buying it. 

[Barrett Bridgewater]

I know this is an 8-year old thread, but wanted to shed some light.

FEMA looks at the ground elevations. If the ground is above the flood level, then your building qualifies to be removed from the High-Risk and into the Low-Risk (X-Zone). THAT removes any lender requirements for flood insurance.  Your lender drops their mandates.  

You will have won the freedom to decide if you want flood insurance, how much coverage, etc (rather than what the lender requires).

NFIP under their new system (Risk Rating 2.0) evaluates flood risk on a whole lot more factors other than just elevation.  This has caused a great reshuffling across the nation in premium amounts.  Some actually got reductions.  Overall though, we are seeing massive premium increases.

So in your due diligence... investigate first if the buildings might qualify for a removal out of the high-risk flood zone.  If so, you just gained a lot of property value the current owners didn't know was possible.  

@Brian Walsh @Franklin Romine @Justin Owens @Michael R. @Lynn McGeein @Tom Brooks