Flood Zone Property?

9 Replies

First time post here.

I found 3/2 1,700 sqft foreclosure. Asking price is 60k. Comps are 95-100k in the area. House is in good shape and needs a roof and interior paint. I was moving along and preparing my bid when I discovered it is in the Flood Zone (100 year). I am getting pricing for insurance and researching the area (talking to neighbors and the city) about any previous flooding in the area. The neighborhood was built in 1969 and there are no signs of any issues. What else should I consider? Should this impact my bid? Is buying in a flood zone a immediate no go? Any input is appreciated.

Wait to see what the flood insurance is. Definitely not a no go.  Being in a flood zone is a major turn off for a lot of investors/buyers but it is not always an issue. We have a rental property that is in the 100 year flood zone and we pay $600 a year for insurance.  Just have to factor that number into your analysis.  During a big hurricane last year, our property did not flood and a lot of houses that are not in a flood zone did.. 

Hi @Vance Wyly, 

@Sean McDonnell had solid advice. I suggest you look under the google search of "private flood insurance" or "Lloyds of London flood insurance", I would skip the ads. And see if you can get a private flood insurance policy for your property. I would also check to see if the current owner has a flood policy and sometimes if they bought it when the area was mapped into the 100-year flood zone they may be getting a heavily subsidized policy you would know this by looking at their policy for the words grandfathered, and one last suggestion is to see if there is an elevation certificate. Both the Elevation Certificate and the grandfathering are on the government policy which is called the NFIP. If you want me to look at anything you can send over. Good luck. PS just because your property is in the 100-year flood zone it doesn't mean it has flooded or will it will, however, any buyer that is leveraged will be required to get flood insurance.   I have an article I wrote on buying or selling in a flood zone send me a note it you want me to send you link. Good luck. Blessings Flood nerd. 


If you buy in a flood zone or really just about anywhere it's worth adding flood insurance. Remember you just need building and I'd tell the tenants to buy personal property. Just another cost to work in but I wouldn't run or think twice about a place that may flood. NFIP is great and easy to use but if you end up in a market where the rate there is very high see what private market offers.

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