When embarking on the adventure of buying a new or new-to-you home, so many thoughts and emotions run rampant through your head. It is exciting, scary, and can even be very overwhelming. There are so many things to consider when it comes to even the basics like price, style, and type of buy, that other things you may need to consider likely take a back seat. However one thing that should always be up toward the top of the list is zoning. Purchasing in a flood zone is not necessarily a bad thing, but upon doing so, there are a few things you should consider.
Familiarize yourself with the basics when it comes to storm knowledge. Is your particular area one that is in the path of frequent storms? Whether flooding is caused by a hurricane, melting snow, or just poor drainage systems, it is imperative that you protect your assets should you decide to still purchase in that location.
Speaking of protecting your assets, insurance is another thing to consider when purchasing in a flood zone. You would think this should seem obvious but the number of people who don’t carry additional insurance for flooding is mind-boggling, as it is not covered under your standard home owner’s policy and any water damage caused by a flood would have to be paid out of pocket if not protected by an additional certificate.
When assessing your home’s property value, for both purchase price and insurance alike, a home located in a flood zone may hold a significantly lower value than a comparable one in a different part of town. This could work in your favor when you are in the market to buy, however it is something to keep in mind for the future when you want to consider selling. If you are looking to purchase your “forever home” then this isn’t really a problem, but it’s probably not the best option to consider for a flip.
One last, and very large, consideration to take into account when purchasing in a flood zone is the fact that someday you may lose your home altogether. Of course no one wants to think about this, and additionally, no one thinks it will happen to them. But that is why insurance was created. Purchasing in a flood zone may seem like a risky move, but as long as you take all precautions necessary, owning the home of your dreams is totally worth the gamble!