House partially located in floodway

7 Replies

Is it a buy and hold? What is your floodzone? has it flooded in the past? If it is a buy and hold know that investor coverage is different then owner occupied coverage if it is covered by FEMA. You are in texas so there may be some region specifics as well, maybe places where it flooded during your worst storm but never before. I wouldn't want to deal with tenants in a flood so flood insurance isn't the issue but whether it really floods. Check out for more info.

@Colleen F.

Yes it is a buy and hold. It was deemed "low risk" so the insurance will be around $550 a year. There has been no flooding issues in the past. I have owner occupied insurance, but that will change when I move out around a year later. I am concerned it will be changed to high risk 10 years down the line and my rates will skyrocket. 

@Curtis Towers you could ask what a non-owner occupied policy will cost and cover, let that drive your decision. I know it can be alot higher. A property we had in NJ that did flood was 3k and that was 2014, when FEMA came through the coverage was actually better because my brother who was part owner was living in one unit. If he hadn't been it would have been much less. In addition basements below flood elevation aren't covered as finished space. The tradeoff for you will be an owner occupied mortgage rate when you move out which could save you alot vs an investment rate. However, for me, for a buy and hold the flood risk should be small. I don't want to deal with a flooded tenant.

$45 a month is a relatively low cost. I wouldnt let that low amount necessarily swing my decision. 

Also, you can always try to get a survey/elevation certificate to see if you can get it exempted from the flood plain. Costs like $800-1000 or so in my market. 

Originally posted by @Curtis Towers :

@Russell Brazil

What are the chances an EC would change the zone? I am worried about the resell ability, as well as being moved to a "high risk" area several years down the road, which would impact my insurance substantially.


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