Flood Insurance
FLOOD INSURANCE__DO I NEED IT? FEMA has recently updated their maps
to determine what properties are considered in a Flood Zone. This
impacts you as a buyer since a lender will not provide a mortgage
without a flood insurance rider paid for in advance of the closing if
one is needed. And it isn't cheap. It doesn't mattter if you are
married to the insurance broker--the cost is dictated by the federal
government. You may be able to get a high deductible. We are still
talking about a policy that could cost between $1,000 - 1,700 a year.
WHAT IS A FLOOD ZONE PROPERTY? Some guy in a dark government room
looks at available data and arial photos and draws a rough line around
a lake. Go to the FEMA site and plug in an address of the property you
are considering to buy at: www.FEMA.gov.
I have had listings that wouldn't flood even if NOAH was building an
Arc, and there was a reverse gravitational pull on the earth.
SO WHAT HAPPENS IF THE PROPERTY IS CONSIDERED IN A FLOOD ZONE?
First you would need an "elevation certificate" which can be performed
by a qualified surveyor. If the house on the lake shows to be higher
than the spillover height (in the case of a lake held back by a dam) or
by other factors that can determine the maximum lake height, then the
surveyor can send to FEMA a form to adjust the flood zone maps--(which
takes about 6-8 weeks) If FEMA accepts the findings, then your property
will not require flood insurance again. Don't expect a seller to even
know about this problem, or to have aquired a elevation certificate.
Most sellers would put in their disclosures that their house is not in
a flood zone if they are not currently paying for flood insurance.
Certainly a current owner wouldn't voluntarily let their insurance
company know that their house in a flood zone so they could have the
privelege of forking out $1700 a year for insurance. What you need to
know as a buyer is to find out before you make an offer on a property
if flood insurance is going to become an issue.
Here is some info about Flood Insurance
Here are some Flood Insurance Basics.
