Flood insurance in Kansas City Missouri

7 Replies

Hey everyone, does anyone know the regulations for flood insurance in Kansas City Missouri? I'm trying to run the numbers and I am about $200-220 a month cash flow after all expenses including PITI, vacancy rate, managment, maintenance and cap ex. Although, a little unsure about the insurance. I heard insurance was extremely expensive (possibly $200 a month) I'm unsure. I haven't checked with insurance companies yet but will asap! Just wondering if anyone knows if it's a shall from the city or a should. Also, average pricing for normal insurance and pricing for flood. This is all on a SFH 3 bed 1 bath. Thank you :)

@Marcello Oliveri Flood insurance requirements are the same everywhere. If the property is located in a FEMA designated 100 year flood zone, lenders will require flood insurance. If it's not in a flood zone, a separate flood insurance policy is not required, however, you want to read your policy carefully to understand your flood coverage. Your lender will run a flood cert to see if the property you are buying is in a flood zone. If it is, the will require flood insurance. FEMA used to subsidize flood insurance so it wasn't that expensive but since they've cut their subsidies, it has almost doubled. Just because a property is designated as being in a flood zone doesn't necessarily mean that it is prone to flooding. It just means that it has flooded at least once in the last 100 years. I would not recommend buying in a flood zone, however.

who you using for insurance, I really should get new quote for mine since I was lazy and never shopped it.

Thank you Mike. You’re always so knowledgeable. I really appreciate the great information. Matt, I’m still looking around. I called Geico and it was ridiculous for just regular old home insurance. They quoted me approximately $1600-$1900 per year ($133-158 per month). I almost died. Still trying to figure out something waaaay cheaper. It doesn’t seem like anything I’m looking at is in a flood zone though. Mikes info with FEMA is great!

marcello, I would suggest you look for Private Flood options, if the property has not had a loss you would be able to find better premiums. 

Oddly enough I just got off the phone w/ a new referral... if it pans out I'll send you the info.

Thx guys... I am closing escrow on 3 Properties next week. They don’t appear to be in a flood zone so I think I’m not to worried about paying for flood insurance. Hopefully, I won’t need it

Maybe you guys can tell me if you think I got a good deal.. let’s run some numbers.

Purchase price
1. $63k in independence (rents $800 month)

2. $64k in Raytown (rents $765 until June then I
would like to raise them to $850)

3. $64,700 in Kc (good area of 64134 above
Ruskin) (rents $830 and goes to $930 in June)

Tenants pay all utilities and my mortgage is 4.6% interest rate for 30 year.


-PITI approx $380 a month average for all 3
-management $75 each property
-7% vacancy rate ($56 a month)
-13% maintenance ($83 a month)
-1% Incidentals ($8-10 a month)

-Leaves me about $150 a month.
-20% down is $12,800+3000 closing cost
-$15,800/$150X12=$1,800)= 11.9% ROI

Would anyone do this deal?
I thought that was pretty good

Most important! Did I do any math incorrectly?

Sorry, PITI IS $415 a month not $380

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here