Is it crazy to be thinking about buying a home that needs high flood risk insurance? (Raleigh: homeowners insurance)

[Awakening Escapade]

As recently as a few months back, I would have never considered such an idea. However, I saw an adorable home that is in a flood zone. It's about 3 blocks from a river in the Inner Banks. How crazy am I to be considering this?

[dsobotta]

Originally Posted by Awakening Escapade

As recently as a few months back, I would have never considered such an idea. However, I saw an adorable home that is in a flood zone. It's about 3 blocks from a river in the Inner Banks. How crazy am I to be considering this?

If the home is of fairly new construction and was built with the flood zone in mind you are probably okay. Most relatively new construction has the mechanical elements of a home above normal flood dangers.

Older homes can be at more risk. It just depends on how it was built and what the flood zone is.

Our home is on the banks of the White Oak River in an AE flood zone. Our living area and anything like air conditioners or hot water heaters are above the normal flood risk. The house is about six feet above the floor of our garage.

In our case the house which is appraised at about $600K has $2,750 in homeowners insurance plus $600 in flood insurance. We're in an AE flood zone. That is far more than our insurance was in Roanoke, Va. on a simiarly valued home.

However, the property taxes on the Roanoke home were $6,100. Our property taxes in Carteret County are only $1,750 so in the end we are still about 30% cheaper living here on the coast.

Your particular situation could be different. I suggest you call an insurance agent and see if you can get a quote for the home.

You can also look at the electronic flood zone maps and get an idea of what type of flood zone covers the area of the home.

I have a previous post on City-Data that explains how to use the maps.

[cheerbear]

Is the home on pilings? That's one important factor to consider. Also, check the flood insurance policies available. How much do they cost? What's their policy on compensating homeowners for damaged homes and property? If you do decide you want to live there, at least take all necessary precautions first.

[cats_pawn]

flood insurance is the most inexpensive of all the insurances.
I live in Florida. I pay $733 a year for flood insurance. It's probably lower in NC, not sure though. but flood insurance is national, and usually quite low.

[Bill Hitchcock]

Your insurance rate will depend upon what flood zone the home is in. There is a broad range of FEMA designated flood zones-But here in coastal NC we primrily deal with base flood zones A, AE, X, VE. Some of the zones-Like AE-You'll see a little number after it- say a 5 or 6 or a 7, which is designating elevation.
These base flood zones are trying to determine or predict the 100 year flood. It will be expressed in terms of a 1% annual chance.
Some flood zones, such as "X" are expressed at a 0.2% annual rate.
Any Buyer's Broker worth his salt will get any and all of this info for you for any property you are interested in. Let me rephrase that-They should get all flood info to you in advance of any offer.

Please keep this in mind: Proximity to a body of water is not necessarily a good indication of a properties potential to flood. As I have stated here in the past-I know of properties a mile inland that will flood faster/sooner than some waterfront properties.
Let me know if you need any additional information. Waterways, weather & flooding, topography are my, "thing". OK-Throw in fishing too!
Bill

[giffman]

Would it be crazy if the house were in Raleigh / Durham......probably. There are far too many available homes on high ground in that part of the state. You on the other hand are looking at the inner banks. It seems that a lot of homes in that area would be in low lying flood prone areas.