Flood insurance in a non flood zone ?

Question

I don't live in FL, so can anyone tell me if they get flood ins on your properties that are not in Flood zones ?

I've had some people say its a waste of money if not in Flood Zone, and others say Flood ins is necessary anywhere in FL?

Anthony Lee · Answer

@Elizabeth Shelby More than 90% of the United States is in a Flood Zone. As mentioned in my previous post, its a question of which specific zone the property is located in.

That being said, just because the property is near to the coastline, does not mean that flood insurance is more expensive than elsewhere.

It has to do with the particular zoning of the property, in relation to the flood plains, as well as the elevation of the building in relation to the base flood elevation.

For example, a property in a Special Flood Hazard Area, a higher risk zone, will be more expensive than a property located in a moderate- to low-risk zone. However, If the lowest habitable floor of the structure is significantly above the base flood elevation, flood insurance will be significantly less expensive than a property which has the lowest habitable at, or significantly below, he base-flood elevation.

As you mentioned, it is often good for a buyer or property owner to check with FEMA's Map Service Center (MSC) to see if there has been a change in the zoning. However, the representatives at the MSC are not able to provide a zone determination, which is what you're looking for. They are also unable to provide information relating to the National Flood Insurance Program and exact impact a particular zone may have. Nor are they able to provide any advice or recommendations as to what can and cannot be done to mitigate the exposure to flood losses.

There are also times, depending on the particulars of the property, where even if a property is located in a Special Flood Hazard Area, or high risk zone, steps can be taken, and avenues can be explored, to potentially reduce the flood insurance costs significantly.

It is best to speak with an independent insurance agent, like myself, whose specialties include Flood Insurance.

Anthony Lee · Answer

More than 90% of the country is in a flood zone. It's just a matter of how high of a risk is that particular zone.

If the property is in a moderate- to low-risk zone, flood insurance is rather inexpensive and affordable.

If the property is in a high risk zone, otherwise known as a special flood hazard area, flood insurance is often required and at times expensive. There are private alternatives to the National Flood Insurance program which can be more affordable if the property qualifies.

In Florida, even if the property is not located in a high risk flood zone, it is usually still a good idea to get flood insurance. #1, if it floods you're covered. #2, if they the zone changes, which zones often do change, and the property is rezoned into a high risk zone, flood insurance will be required and you'll likely qualify for grandfathering.

I just sent you a PM.

Par Attaran · Answer

Thanks for the advise guys. Went ahead and did flood just in case, probably worth the $600 just for piece of mind

Fred Heller · Answer

The cost of flood insurance for a low-risk property is minimal and I think is a good investment. I pay $400 a year for my home.

Any area can flood given the right circumstances. Here in Houston over the last few years, we have experienced flooding in non-flood zone areas because of development and poor planning. Much of the flat prairie around here that used to absorb rainwater has been covered up with concrete, and the water has no place to go.

Tom Brooks · Answer

You should reach out to a CFM who does insurance. I can direct you if you need help.

Joey Hamaoui · Answer

@Bryan Wallace makes a great point. Drainage is a huge problem in some areas here in Jacksonville. It can be the difference of just a few houses too. Down the block from me the place goes almost under water from the rain and my place has no issues. Definitely check with the city.

Joey Hamaoui · Answer

I don't think any of my investors got a specific policy for flood insurance. They generally will get the bare minimum insurance required from the property management company.

I'd recommend speaking with an insurance agent about your concerns and some property managers.

I'm not an expert but my understanding has been that all of Florida is in a "flood zone" and it just depends what level risk your zone is. We've had to back out of a flip because it became known that the zone was high risk and there would be elevated costs associated with that.

Good luck!

Tom Brooks · Answer

Wet mitigation like foundation flood vents might be able to lower the insurance costs additionally. Let me know if you would like me to direct you to a contact who can evaluate the elevation certificate.

Elizabeth Shelby · Answer

Hi Par,

Some do most don't in my experience unless its a lenders requirement.  Some lenders try to insist on it even if the property is not in a flood zone, but if you counter with FEMA's flood zone mapping information they will back down.  Buyers are encouraged to check with FEMA to see if there has been a change in the zoning and go from there.  Flood insurance rates are quite high in some areas the nearer the coast the more expensive.

Flood insurance in a non flood zone ?

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