Flood insurance

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perfectpeach

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I am so disappointed. We are set to close on our house April 17th. This is our first home and we are SO excited our kids will finally have a yard to run around in… This was the perfect house. A great price and a large backyard… HOWEVER, we didn’t realize flood insurance was so expensive. They haven’t given us an actual quote yet… just an estimate of $200-$400 a MONTH. There is no way we can afford that…

So… I guess we have to find another house.😦
 
I sympathize, it stinks to come so far with it and then have the deal fall through. I was afraid that was going to happen with us for a while. The good thing is that now you know not to take even a second glance at houses that happen to lie in the floodplain - and that should be something that’s on the seller’s disclosure. If not, your real estate agent can find out for you.

Have you called around for more quotes? I’d say you should at least get 3 or 4 quotes on this before you decide to write off this house.

The good thing is, it’s a buyer’s market. We’re going to close on a house at the end of the month and wouldn’t you know, I got six emails today about houses that just went up for sale. 😃 Keep your chin up! You will find the right house for you!
 
Flood insurance comes from the Federal Government-FEMA. Check this website out:

floodsmart.gov/floodsmart/

It is possibly that you might be eligible for a preferred risk policy which is less. It depends on where you live. Also, you can adjust the deductibles on the coverage. Where I live, I am required to have flood insurance.
 
You need to check into that more. Flood insurance comes from the federal government, it isn’t that expensive, and if it actually was that expensive where you live it would be that expensive for EVERY home in that area.
 
If the home is within the Special Flood Hazard Area, you MUST purchase flood insurance backed by the NFIP to get a mortgage. That’s federal law.

As a civil engineer and certified floodplain manager myself, here’s my advice: Don’t do it. Buy outside the flood zone. Before ever even making an offer check the flood zone. You can do it yourself here:

msc.fema.gov/webapp/wcs/stores/servlet/FemaWelcomeView?storeId=10001&catalogId=10001&langId=-1

But even if it looks clear, make sure your offers give you a contingency out in case the mortgage company determines that it is in.

Floods are a HUGE hazard to human life and property. FAR higher than fire, earthquake or lightning. That’s why only the Feds even OFFER insurance for flooding. If private companies offered it, the premiums would be higher than the mortgage payment!

Flood insurance comes with strings too. You may LOVE the house now, but will you still love it after a flood when the insurance payout comes with a requirement to lift the whole building up on 8 foot high posts? Ugly!

Do yourself a favor and make sure you buy outside the floodplain.
 
Do you have to get flood insurrence? Is it a low area prone to flooding? Don’t always believe that “everyone’s at risk” commercial. I live on top of a hill so it would be a waste for me.
 
THanks for all of your answers. I really have a lot to consider. I have no idea why we were quoted that much for flood insurance, but it is possible my husband misunderstood her? We are looking around…
I don’t think our area is THAT bad. We literally live 5 houses down from our inlaws and they are outside of the floodplain.
 
Check the floodplain maps and ask lots of questions.

But, maybe he misheard because when I lived in Houston, TX, I paid $300 per **YEAR **for flood insurance and I had the maximum policy coverage offered by the government. And, we all know Houston can be flood central.
 
Thanks!
We contacted the seller and are going to meet with his former agent.
 
Be careful of expecting common sense to be involved. The NFIP is a Federal government program. It HAS to be highly structured and simple enough to be implemented by bureaucrats. All that matter for the insurance requirement is where the line falls on the map. Your next door neighbor maybe out and only need to pay $300 a year because the map shows him out. But if the map shows YOU in, you’ll be paying a lot more. Get the map. Goto the link I provided. Find the home and see where the floodplain line falls.

If the Feds can do it, YOU can do it.
 
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