Flood Plain Liability???

Question

I have the opportunity to purchase a lot in a flood plain. I intend to put a mh on this lot and rent it out. I know texas requires land lords to have a flood disclosure. Other than informing the tenants of a flood plain and recommending flood and renters insurance, can I be liable for anything flood related, damage, loss, death etc.? TIA

Robert Murphy · Answer

@Jordan White wow you have some solid questions. Although I don't know the exact answers to the responsibility. I do know that mobile homes in flood plains is a difficult thing to navigate. The issue with most flooding events and Mobile homes is they turn into a boat if there is enough water motion and if the setting of the structure isn't fastened to the land in accordance to the local ordinance guidelines and manufacturing mounting guidelines. Your goal is to make sure the home doesn't float away I think if it does then you might be liable. As for awareness of your renters, I would assume if you had a lawyer work up a disclosure (similar to the one that speaks about lead paint) and get renters to sign it. As well as some kind of landlords strongly suggest renters insurance that included flood insurance and if the renter decides to not purchase this coverage they are solely responsible for their own contents.

I think with any business there is always a liability I just think all we can do is our best due diligence to ensure that the property is as safe as we can make it (fire alarms, CO monitors, and a strong recommendation to get their own coverage) make sure the home is mounted in law and if you can go a bit farther then the requirements (if it is a little slack) and document that what you did and what the intent of the steps you took and the probable outcome. Good Luck. Your flood nerd

Joshua Spencer · Answer

I'm an engineer here in San Antonio and want to make sure you understand some of the issues you may run into. You will need to build the property finish floor elevation above the floodplain elevation. So I would recommend you contact a civil engineer and assess the land to determine if it's even buildable. I wouldn't mind helping you with that if you want some help.

Cameron Moore · Answer

I will say from an insurance standpoint, depending on the actual risk level of the zone or past losses, you could never see a flood. Some are just rated for the possibility of the loss. As far as you are concerned on risk, you should have a general liability policy with an attached umbrella for added protection from the risk involved in owning a MH park. That is with or without a flood zone.

Flood Plain Liability???

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