Valuing investments in a flood plain

[Kevin Coggins]

So when analyzing potential investments in the flood plain, do you just factor in the cost of the flood insurance? Assuming two properties are in the same part of town, but one happens to be in the 100 yr floodplain and the other isn't in any floodplain.

Also, would you value differently if it's land instead of a home?

I'm curious, because it seems like you'd want to factor in the cost of flood insurance, in addition to also factoring in that the property will flood every X years so you'd need to save for the deductible that's inevitable. I know that there is always the chance you can protest the flood plain status or make improvements too.

Or do you just avoid flood plains altogether? That was my initial thought, but trying to get a feel from others with some experience.

Thanks!