Considerations When Buying a Home in a Flood Zone

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Are You Looking to Buy a Home in a Flood Zone? 

Flooding is the most common natural disaster in the US so if you own a home, you are at risk for water damage whether you are in a flood zone or not.

It’s always a good idea to talk with your realtor and insurance agent before you make an offer on a home in a flood zone.

Here are some things you should consider when buying a home in a flood zone:

  • What type of flood zone is the home in – X (low risk flood zone), A or V flood zone?
  • Is the home negatively elevated?
  • Does the current homeowner have an Elevation Certificate (which determines of the home is negatively or positively elevated) and a flood policy in place?
  • Does your lender require flood insurance and what does the flood insurance cover?

It is important to get the answers to these and other related questions in advance of purchasing a home on or near water. Flood insurance coverage may be expensive if you are required by your mortgage company to have it especially if the home is negatively elevated.

Most flood coverage can be transferred by the current homeowner to the new owner for no additional cost. When purchasing a home in a flood zone, the lender may require you to have flood insurance. An elevation certificate may be required to determine flood insurance premiums so be sure to ask the current homeowner for the documentation.

For more information, contact your account manager at Rand Insurance.

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