BUYING A HOUSE IN A FLOOD ZONE: PART TWO
In the last article “Buying a House in a Flood Zone: Part One” we talked about natural and manmade floods that can occur which are unpredictable in their nature. I talked briefly about home insurance and what generally is covered under water damage done to and in your home. FEMA gave us websites to look up a property and or request a property FEMA FLOOD ZONE REPORT. Lastly, we defined what a flood zone was.
In this article we will cover:
- FEMA Flood Zone Definitions
- Flood Insurance in’s and out’s
- What preventative measures you can take against “floods/flooding”
FEMA FLOOD ZONE DEFINITIONS
When considering a flood zone property you will have already gotten a map of the property and a FEMA flood zone designation. Having your property zoned, you will then be able to proceed in your purchase decision along with the required insurance. Depending on your financial situation, your bank will most likely require you to carry flood insurance if you are purchasing a flood zone property.
FEMA determines what areas are flood risks. These areas are classified as High Risk, Moderate Risk, Low Risk, Undetermined Risk, and are shown in a series of zones.
- High Risk– shown on the flood maps that begin with the letters ‘A’ or ‘V’ and these zones have a 1 in 4 chance of flooding during a 30-year mortgage in these high-risk areas. Any home or business owner in these high-risk areas with federally regulated or insured lenders mortgage are required to buy flood insurance. These are zones are also known as Special Flood Hazard Areas.
- Moderate/Low Risk– considered Non-Special Flood Hazard Areas. These areas have reduced flooding, but the risk is not completely removed. These areas are shown on the flood map as ‘B’, ‘C’,’X'(shaded ‘X’ as well. Twenty percent of the National Flood Insurance Program claims come from these areas. They also receive one-third of federal disaster assistance for flooding. TAKE NOTE: Flood insurance isn’t federally required in these areas of moderate-to-low-risk areas but is recommended.
- Undetermined Risk– areas that FEMA has yet to do a flood risk study in, shows as the letter ‘D’, insurance in these areas reflect the uncertainty.
HOW TO GET FLOOD INSURANCE
In order to ‘get’ flood insurance, you must ‘qualify’. You ‘qualify’ for insurance by having a home, or business in a community that HAS JOINED the NFIP. A community that has joined the NFIP has agreed to put in place and enforce sound floodplain management standards. You can give NFIP a call at 800-638-6620 to see if your community participates in the NFIP.
If your community has joined the NFIP you can purchase flood insurance through an insurance agent. The NFIP does not directly sell flood insurance. The NFIP can direct you to a qualified insurance agent.
Anyone who owns a home, condo owners/renter, rents (house, apartment, business building), or business building owners can obtain flood insurance as long as the building is in an NFIP community. Your annual cost for flood insurance will vary by how much insurance you’ve purchased, what the insurance covers, and the property’s flood risk.
There are two types of NFIP flood insurance:
- Building Insurance: covers Electrical and plumbing systems, furnaces, and water heaters, refrigerators, cooking stoves, and built-in appliances like dishwashers, permanently installed: carpeting, cabinet, paneling, bookcases. It also covers window blinds, foundation walls, anchorage systems, and staircases, detached garages, fuel tanks, well water tanks and pumps, and solar energy equipment.
- Content Insurance: personal belongings such as clothing, furniture, and electronic equipment, curtains, washer and dryer, portable and window air conditioners, microwave oven, carpets not included in building coverage (e.g., carpet installed over wood floors), valuable items such as original artwork and furs (up to $2,500).
Keep in mind flood insurance covers losses caused by direct flooding. If your sewer backs up because of the flooding you would be covered. If your sewer backs up without the direct cause being flooding you are not covered. Also, remember NOT EVERYTHING WILL BE COVERED! Examples of items not covered under building or content coverage are:
- Temporary housing and additional living expenses incurred while the building is being repaired/is unable to be occupied
- Landscaping, wells, septic systems, decks and patios, fences, seawalls, hot tubs, and swimming pools
- Financial losses due to business interruption
- Currency, precious metals, stock certificates, other valuable papers
- Cars and most self-propelled vehicles, including their parts
- Personal property kept in basements
PREVENTATIVE MEASURES YOU CAN TAKE
There are several preventative measure you can take to help prevent/protect your home from flooding:
- Keep all rain gutters clear and free from debris
- Seal up any cracks in your foundation, sealants to windows, doorways, and foundations
- Buy a battery-powered sump pump
- Expensive/sentimental items to higher ground– keep them out of the basement
- Install a flood sensor– most security systems have this option available for an additional cost, you can also purchase water sensors for your washing machine
- Sewer or septic line check valves– one way only
- Tiling system around your home
- Grade your lawn away from your home
- Keep downspouts properly attached to your rain gutter system
- Gridded basement flooring accessory to allow for easy removal/reinstallation of carpeting
Buying property in a flood zone can be challenging, but it doesn’t need to be a turn-off. With the proper guidance and expert knowledge from your UC MWLP real estate agent and FEMA, you can turn your flood zone property into a great home. Contact us today and we’ll help you through the process.
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