If you are looking to buy a home in Florida, there is a chance that it will be located in a flood zone. This could mean that your property is at a higher risk of experiencing significant water damage at some point in the future. Let’s take a look at what you should know about buying properties that may be vulnerable to floods.
You may be able to buy a home with a beautiful view
Properties that are located near the ocean or other large bodies of water may be at a higher risk of being damaged in a flood. However, they may also be more affordable, and this may make it easier to purchase your dream home without going over your budget. Of course, it might also be harder to sell the property in the future because of the risks associated with where it is located.
Learn everything you can about flood insurance before you buy it
If you plan on buying a home in a flood zone with an VA, USDA or FHA loan, you will need to purchase flood insurance. The same is typically true if you are borrowing money from Fannie Mae or Freddie Mac. However, it may be a good idea to have flood insurance regardless of where you live. You will likely be able to buy a policy from the National Flood Insurance Program administered by FEMA.
On average, you can expect to pay $700 a year for a policy that will likely cover up to $250,000 in damage done to your home in a flood. While other expenses may also be covered, there is no guarantee that you won’t have to reach into your own pocket to pay for repairs or to replace damaged property.
Generally speaking, you will need to purchase a home with the help of a real estate law professional who can help to ensure that a seller discloses everything that there is to know about the house before a sale closes. An attorney may also talk more about what a flood insurance policy might cover.