What You Should Know About Buying a Home in a Flood Zone
Did you know that floods cause around 75,000 Americans to evacuate from their homes every year?
While there’s always a higher risk of property damage or worse when living in a flood zone, there are also benefits. It’s always best to weigh the pros and cons before coming to a final decision.
Is your dream house located in a place that sees a lot of flooding? Keep reading to learn all about buying a home in a flood zone.
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Degrees of Risk
Not all flood zones have an equal amount of risk. Flood zones with the lowest risk are referred to as Non-Special Flood Hazard Areas and come with a label of B, C, or X. X is the flood area with the most minimal amount of risk while B is considered moderate.
Unlike high-risk areas, you don’t need to purchase flood insurance if you live in a flood zone of moderate to minimal risk. However, it can still be worth the investment in case the worst-case scenario happens.
If the home is located in a flood zone labeled A or V, then it’s important to know that these areas have the highest risk of flooding. Otherwise known as Special Flood Hazard Areas, these are the places where flood insurance is required.
The Cost of Flood Insurance
Even if you’re buying a new house in a high-risk flood zone, there’s no guarantee that you’d experience a flood anytime soon. You could even go decades without a single flood.
However, because the chance is so much higher in an A or V zone, you’ll need to invest in the required amount of flood insurance. In a low-risk area, it could be around $700 dollars a year for proper coverage. A high-risk area could cost you around $1,000 a year or more.
Fortunately, these higher costs could be offset by the fact that homes in flood zones are often cheaper. Either way, don’t forget to review your choices.
Instead of hoping every single day that you’re not a victim of home flooding, there’s plenty you can do to prevent or minimize potential damage.
Protecting Your Home
Depending on what your budget is, you have a lot of options when it comes to protecting your house from flooding.
For instance, you could raise your home on a pier, apply sealants, redirect your downspouts, install sump pumps, and much more.
Aside from cautionary measures that protect your home, you can also protect your family by raising your electrical outlets, for instance.
Buying a Home in a Flood Zone Is Possible
Now that you’ve learned all about buying a home in a flood zone, you can buy your dream house. While flooding can be dangerous and destructive, it shouldn’t prevent you from living in an area that’s perfect for you and your family.
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