Negotiating Previously Flooded Home

[Jerel Davis]

I’m under contract for a property in Brookshire, Tx and the sellers stated in their sellers disclosure that the home flooded during Harvey. During due diligence, I found out that there were actually two claims: Harvey and Tax Day Floods during their ownership. This deal is make or break on the premium for flood insurance and the insurance company cant find the elevation certificate, but insists there was one. The sellers current coverage is 40,000 building 5,000 deductible with a $1,364 premium (which would probably mean I’d need more coverage and would have a higher premium if new elevation certificate doesn’t help). My loan amount would be $100,000.

How would you negotiate the fact that seller did not give full disclosure on the flood history?

I’m two days away from the end of my option period. I Still need the survey and elevation certificate to get hard numbers.