OMG $8000 FLOOD INSURANCE PREMIUM??

[Collette Douglas]

Just reached a purchase agreement yesterday for a SFR in Rhode Island. Built 1880. In AE flood zone. Basement with bulkhead, can't find a flood elevation certificate yet. No claims on file. Just called USAA and was quoted just shy of $8000 for a non owner occupied premium. Someone tell me I have better options. Will be mortgaged, through VA, through USAA. No chance to pay it off any time soon. Is there a company that can underwrite an AE flood policy for wayyyyy less? Would an elevation certificate reduce my premium on a property this old and in an AE zone? HELP. Do I walk away from this deal? The expense would obliterate any potential returns here.

[Anthony Thompson]

@Collette Douglas I don't have personal experience with high risk flood zone properties so I can't offer much specific on your question other than to shop around. I checked and while USAA is popular for homes funded with VA loans it looks like you're free to choose a different company if you wanted to.

I really just wanted to chime in to point out that, if you're using the regular RI Association of Realtors purchase and sale agreement then under the inspections clause (section 16 if you're using the most recent P&S) you have 10 business days after the effective date of the P&S (which is the latter of the buyer or seller signing), to back out for any reason and be able to get your deposit back.

So this is a question you definitely want to resolve within that time frame. If you can't find anything better within that time frame, you want to make sure to give your agent (or attorney, if you don't have a buyer's agent and the listing agent is the only one in the transaction) enough time to communicate your backing out, within those 10 business days.