![]() ![]() It may reveal information that is a deal-breaker, but it could also contain information that puts you more at ease. FEMA suggests requesting a copy of the EC from the seller before you purchase the home. The elevation certificate may also help you to make an informed decision about whether to purchase the home. The EC is used to determine the estimated risk to the home-insurance companies use this information to set premiums. The elevation certificate (EC) contains information about the building’s location, characteristics, and its elevation compared to the estimated height of expected floodwaters. If you decide to purchase a home in a high-risk flood zone, your insurance agent and mortgage lender may request an elevation certificate. However, you could be eligible for discounts. Rates are set by a national standard, so there may be no benefit to getting multiple quotes from different insurance companies. ![]() Mortgage lenders will require only that you insure the building, but you can opt to insure the contents, as well.īefore buying a home in a flood zone, get flood insurance quotes and make sure it’s an expense you can afford. Another factor that influences the cost of insurance is the level of coverage you select. Insurance premiums are generally proportionate to risk: the higher your risk, the higher your premium. If you are thinking of buying a home in a high-risk flood zone, such as A, AE, or V, your mortgage lender will require you to purchase flood insurance. Premiums are generally lower for homes with lower risk-a small monthly payment could save you thousands of dollars in repair costs. ![]() Even if your risk is minimal and insurance is not required, FEMA recommends that you get it anyway. Homeowners insurance does not cover damage due to flooding-for that, you’ll need separate flood insurance. If the home was built before the current FIRM, it will not only be more vulnerable to flooding, but could also be subject to higher insurance premiums.Īccording to FEMA, about 25% of all flood insurance claims come from low or moderate risk areas. If you’re looking at a home in a flood zone, Replace out when the home was built. The National Flood Insurance Program (NFIP) uses these maps to set construction standards to ensure that buildings can withstand base flooding.Īs flood maps change, structures that were originally built in low-risk areas can be rezoned into high-risk areas, and may not meet the necessary standards for the new flood zone. These maps are used to inform zoning areas and construction plans, to prevent developers from building homes and commercial properties in high-risk areas. If you plan to purchase a property in one of these zones, be prepared: a mortgage lender will require you to purchase flood insurance, and it could be expensive.Ī flood insurance rate map (FIRM) is a topographic map created by FEMA to show areas of increased risk and hazardous areas within a floodplain. These high-risk areas, known as Special Flood Hazard Areas, carry a higher chance of flooding over the life of a 30-year loan. The zones with the highest risk are labeled with A or V. Before you purchase a home in this zone, keep in mind that structures can fail-a mortgage lender may not require flood insurance for this zone, but flood insurance is recommended. A shaded X indicates an area where flood risk has been mitigated, including by a structure such as a dam or levy. On a FEMA map, Zone X may appear either shaded or unshaded. Don’t be alarmed if the home you’re looking at is in zones X or C these are generally considered to be the zones with the lowest risk. If you conduct your own search (which is highly recommended), you’ll Replace that many homes and neighborhoods are technically located in a Federal Emergency Management Agency (FEMA) flood zone-even homes with minimal risk. The term “flood zone” can mean many different things, depending on what zone it’s in. Here are seven things you should know before you buy a home in a flood zone. The key is to gain a full understanding of the situation so that you can make an informed decision about whether the home is right for you. You’ve found your dream home-it’s everything you wanted, and it’s in your price range! There’s just one problem: It’s in a flood zone. ![]()
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