what you need to know about flood insurance

When buying a home, something you need to know is whether it’s located in a floodplain. Knowing what and where they are can help you make better decisions about buying a home and obtaining the proper insurance. You may think of floodplains being limited to areas affected by hurricanes and tropical storms, and while this is true, floodplains can exist almost anywhere there’s low lying land and rain.

How To Know If You're Home Is In A Floodzone

By definitions, a floodplain is any area that is likely to have flooding from rising water levels in a river, a stream, lake, or tidal area. It may surprise some people to know that flooding is the biggest natural disaster that occurs in the United States.

An area can get flooded from several causes, including hurricanes and other storms, heavy rain, and snow melt. A dam or levee can also fail, which will likely cause widespread damage. Nearly every time there's a flood, it's due to an unforseeable circumstance. The damage can be more serious where groundcover and natural vegetation has been removed for new building projects, or where a forest fire has recently destroyed protective vegetation.

Before buying a home; you need to check with FEMA's Flood Insurance Rate Maps (FIRMs). These maps indicate areas (marked with "A" or "V" that are High Risk, which means that you will be required to get Flood Insurance when you buy. A rating of "High Risk" means that there is a 1 in 4 chance that your home will be flooded within a 30-year mortgage period.

Areas that are less subject to flooding, but where there is still a risk, are rated as being Moderate or Low Risk. These are marked with the following letters: "B", "C", "X", or with an "X" that is shaded. Some areas will be marked with a "D", which means that the level of risk has not been determined yet.

Do You Need To Buy Flood Insurance?


Yes, if you live in a High-Risk area, you must buy Flood Insurance if you have a mortgage and this can be expensive. Talk to your insurance agent to find out more about flood insurance rates and requirements. Living in a moderate or low-risk area will lower the flood insurance rates, and while it won’t be required, it should be seriously considered. Statistically; homeowners in these areas typically file one out of five flood insurance claims.

FEMA claims that on average just one inch of water in a 2,000 square feet home could cause nearly $21,000 of damage, while six inches can nearly double that cost. When you realize just how much damage can occur it’s easy to see the value of flood insurance.

If you own a home in a floodplain, or are considering buying one, you need to be aware that this designation will always impact the property and could impact future sales; possibly in a negative manner as flood insurance in these areas can be costly and insurance prices can rise significantly over the years. 

When you buy a home with the My NC Homes team, you get a clear understanding of the whole picture. Trust the team with over 50 years of combined real estate and construction expereince. Send them a message or give them a call to learn more about what insurance coverages you should consider when buying your next propterty.

Posted by Larry Tollen on
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