Posted on: 7 March 2017
If you have fallen in love with a home only to find that it is in a flood zone, you might not be sure of what to do next. You might still be interested in buying the home, and you might find that it's the decision that you want to make in the end. However, there are a few things that you will probably want to think about before making this big move:
1. Ability to Secure a Mortgage
First of all, you should think about your ability to secure a mortgage for a home in a flood zone. Mortgage lenders are often picky about the homes that they provide loans for, since they want to make sure that the collateral is protected and valuable enough to secure the mortgage. You might find that it is tricky for you to find a lender who will help you buy a home that is located in a flood zone, or you might have to jump through hoops to do so, such as having multiple flood zone surveys done.
2. Cost of Homeowners Insurance
Another thing that you should think about before buying a home in a flood zone is your ability to purchase homeowners insurance. If you have flood elevation certificates that indicate that your property is in a flood zone, you must get insurance that will cover this issue. Flood zone certificates will also determine how much your insurance will be and shows compliance with your community's flood plans.
However, some insurance companies will not insure these homes, while others charge very high rates to do so. Consider shopping around and getting rate quotes before buying a home in a flood zone so that you don't have any unexpected surprises later.
3. Potential for Damage
A home that is considered to be in a flood zone is classified that way for a reason. Even though many homes in flood zones do not experience any flood damage for many years, there is always the increased risk of it happening, particularly if a major storm hits the area. Therefore, it's important to be realistic about the potential damage that you and your family could have to deal with in the event of a flood. Not only do you have to worry about damage to your home and to the things that you keep inside of it, but you also have to think about the potential for your vehicles to be damaged and even for your family to be in danger. Make sure that you have a clear understanding of all of these things and that you are as prepared as possible to deal with these types of scenarios if you do choose to purchase a home in a flood zoneShare