Anyone experienced with 500yr flood zones?

Question

I'm looking at a property that has the front half of the house/yard in the 500yr flood zone and the back half is out of the flood zone. The house is on a crawlspace, and so I really don't think the house itself would ever flood, seeing as the back half is technically out of the flood zone and its the same height off the ground as the front.. My question is, do all houses in the 500yr floodzone require flood insurance, or is it more of a case by case basis? It's in zone x on the fema map. I have heard different answers from different people, and hoping to get some more facts/opinions.. I'd be looking to flip the property, so I don't want my end buyer to be scared off if their mortgage lender required it..

Charlie MacPherson · Answer

@Alec Anderson Your lender isn't the final authority.  Either it's in a flood zone and requires insurance or it's not.

That's determined by FEMA flood maps.  Your lender might be able to provide that, but your insurance person is the one who will tell you definitively - and how much the premium is.

It's sounds like you need a new insurance agent.

John M. · Answer

@Alec Anderson

My house is on the edge, but within the 500 yr flood plane (Zone X) and I'm not required to have flood insurance. Also during Harvey I did not flood. I came 4 inches from water coming in though, just lucky. I think it depends on your lender for Zone X, which they can require if there is history of flooding, and other higher risk areas are Mandatory.

Charlie MacPherson · Answer

@Alec Anderson My understanding is that if any part of the building (not just the property) is touching a flood zone, the entire property is considered to be in a flood zone.

Check with your insurance carrier to be sure.

Jim Adrian · Answer

Check with FEMA for the flood maps and info.  I would bet at some point in the future you will end up completely in the flood zone when they remap the areas due to new development.

Robert Murphy · Answer

@John M. 4 inches of water from your house wow you are luck and have more guts then me, what will you do next time when it come in your home? I sure hope you are seriously considering getting flood insurance.

@Robert Murphy - I may be wrong and often times an told so by my loving wife. However I believe flood insurance is the most misunderstood insurance. It seems people don't want it. They don't carry it unless required. And there is always advice from everyone saying you don't need it if not required.

Flooding is the #1 natural disaster that the US faces that is over fire (do most of us have homeowners insurance policy?)

The big Earthquake supposedly (experts say) we are just waiting for the big one in California, if you lived there would you cover your risk with earthquake insurance?

I have an E&O policy it cost me a lot of money and I hope I never have to use it (be nice to me BP please), insurance is paying for something you never hope to use (weird huh) however if you do need it - boy are you glad you purchased it.

Insuring a risk is really about financial planning for your family, your wealth strategy and your future. It should just be seen as another shield, for your financial future.

My sister-in-law is a very sweet young woman, she had a major disaster personally. She hit an older woman who was walking behind her while backing out of a dimly lit parking garage. Because she hit a pedestrian she is liable. The woman she hit was in the hospital ICU for three months (imagine that bill), her coverage on her auto was for $250,000 for injury to others, I am sure she thought that was enough, and I would have thought that the same. They also didn't have an umbrella (another wealth coverage) (I bought one the next day).

To date she hasn't had a suit come her way however she could get sued as many as 5 years after this event. My brother, her and their family had great financial future plans, investments, savings, They are so worried for their families financial future is at risk it is likely is. They are now in a holding pattern for 5+ years.

@ Robert Murphy - Oh and a flood insurance policy in an X zone is about $500 annually. A flood claim however on average is $70K to $120K, if you want to insure yourself and have the ability to let all that money sit in a savings account great, I however spend every dollar I have on growing my wealth. I am speaking to myself because I need to hear these words. Thanks for getting Bigger Pockets!

Alec Anderson · Answer

@Matthew Paul The flood zone literally goes down the middle of the house, so I don't think that would work haha

Alec Anderson · Answer

Thanks @John M., now we are getting somewhere! Would you care to share what lender you're using?

Matthew Paul · Answer

if the property can be subdivided , cut off the raw land thats in the flood zone , now the house isnt in the flood zone and you have no worries

Alec Anderson · Answer

Thanks for the response @Charlie MacPherson

I spoke with my insurance agent and he told me to ask a lender.. I'm hoping one will chime in here!

Anyone experienced with 500yr flood zones?

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