Waterfront Property? What You Need to Know Before You Buy
You found your dream home on the beach or with a beautiful view of a pristine lake. While this sounds ideal, you must consider that your perfect home is in a flood zone and what that means. With a greater risk of flooding, you should prevent damage to your property and belongings. Before buying a house in a flood zone, consider the risks and benefits involved.
What Are Flood Zones?
It’s important to understand what flood zones are and their different types. The Federal Emergency Management Agency (FEMA) designates areas high risk for flooding as special flood hazard areas (SFHA). They are labeled A for inland zones and V for coastal regions. Then there are moderate-risk areas (zones B and X) and minimal-risk areas (zones C or X). According to FEMA, SFHAs are expected to have a one percent chance of flooding each year.
Buying a home in a low- or moderate-risk area does not guarantee you won’t experience extreme flooding. It simply means the risk is less. Flooding is on the rise with the changing climate and more severe weather. You can ensure you are financially safe by getting homeowners insurance that includes flood protection. Not all plans cover flooding, so you may need additional coverage to protect you from rising waters.
You might rely on your real estate agent to determine whether a home is in a flood zone. You can also check by entering the home’s address into FEMA’s flood map service center. This will allow you to research the zone designation and learn more about potential flood risks.
Have your insurance agent review the claim history on the house, including any previous damage and the severity. If you are considering going through with your purchase, it is best to have a home inspection first. This will help find any signs of former water damage and check the quality of the completed repairs.
What Are the Disadvantages of Buying a Home in a Flood Zone?
The flood risk is the main disadvantage of owning a home in an SFHA. Water can cause damage to your furniture and carpet and leave ugly stains on your walls. Even worse, flood waters may ruin irreplaceable mementos like old photographs, your children’s artwork, and treasured handmade gifts. However, water is not the only problem associated with flooding. You might find yourself fighting mold growth and, in extreme cases, facing structural weakness or deterioration.
Extreme cases of flooding can cause both financial and emotional strain. You may need to leave your home and stay elsewhere while repairs are being made. The damage could be so severe that you must completely rebuild the house from the ground up. Or worse, you might be forced to cut your losses and start over somewhere else.
Another disadvantage to owning a home in a high-risk flood zone is its marketability. It may be a difficult task if you ever decide to sell — or your children try to after you’ve passed. Buyers tend to be hesitant about purchasing a home in an SFHA. It’s a prime location on a crystal-clear lake or at the beach. However, the potential for flooding puts the investment at risk.
What Are the Advantages of Buying an SFHA Home?
While there are certainly some disadvantages to buying an SFHA home, there are also benefits. With a greater risk of flooding, the asking price may be lower than the same house in a dry location. This could be the difference between getting that four-bedroom home with the space you need and settling for a three-bedroom. Because of the flood risk, you often can afford to buy a higher-value home than you originally planned. If you know the possibilities and are willing to face those challenges, you might come out ahead.
Because of the risks, the home may not be as sought after as similar homes outside the flood zone. You likely won’t need to rush through the buying process to beat out other buyers. You can check the property and determine what flood safeguards have been implemented, if any. Talk to your realtor to ensure that the home is priced properly. Your real estate agent will also help you compare it with neighboring properties within the flood zone.
For many, it’s a dream to own ocean-front property or land with access to a lake. The idea of owning their dream property often overpowers the concerns associated with flooding. However, securing your new property and taking all possible steps to protect it from flood damage are important. You can truly appreciate your waterfront home once you have this peace of mind.
Buying a Home in a Flood Zone
When you’re interested in buying a home in a flood zone, it’s important to understand the dangers and benefits involved. You may truly be getting a deal or find yourself trapped. However, by understanding the risks and taking appropriate precautionary measures, you can enjoy your dream home, even when it rains.
