Flood insurance for 100 yr floodplain

2 Replies

Will banks require flood insurance for rental homes in the 100 year floodplain? Also, is the AE zone the same as the 100 yr floodplain? 

We are wondering whether we should even consider purchasing SFR's which would require flood insurance. In the Houston area, that would eliminate a lot of homes.

The flood zone designations are very complicated and reading through them will make your head spin. My understanding is that the 100 year flood zone is designated "A" and there are numerous sub zones within the A zones. AE is one of those, and yes, it is part of the A zone and flood insurance will most likely be required, and it will probably be expensive.

I am a big advocate of the "no flood zone" school of thought. If I were looking at a home for me personally, I would absolutely check the flood zones, and being in a flood zone would be a deal breaker for me. 

But I wouldn't give up on Houston over flooding. Despite its reputation, the majority of Houston does not flood. You can easily avoid flood zones if you know where to look. And it can be just a matter of a block or less. My house is less than a block away from a 100 year flood zone and my yearly flood premiums are very low compared to those in the flood zone.

Flood insurance is required for 100 year flood zones. I bought a rental in a 100 year flood zone and flood insurance was only $211 for the year. I think a several variables go into the cost but I don't think it's necessary to eliminate those houses completely. This house was block and beam and elevated more than houses which gave me some comfort. If it was slab I may have had a different opinion.

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