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Old 09-08-2010, 05:31 PM
 
4 posts, read 32,782 times
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Does anyone know if there are repercusions if a home is purchased in 2002 and are just finding out in 2009 that they are in a flood zone and need to have flood insurance?

Apparently a FEMA flood study was done in 1998 and from what I understand the Realtor should disclose this information. Also, our mortgage company didn't know this either. We have been paying on our Mortgage for over 6 years before we were notified by our Mortgage company and then later by FEMA that we are in a flood zone and require Flood Insurance coverage.

Had we knew when we were interested in purchasing the property that it was in a flood zone, we would have passed on the purchase. I would like to see if there is any way we can recitify or even possibly sue a Realtor for not disclosing this information, and if yes, how does one start the process? Thank you to anyone that can provide advice or may have experience the same problem.
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Old 09-08-2010, 06:48 PM
 
Location: mancos
6,871 posts, read 5,664,606 times
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relax there are plenty of properties in so called flood zones.I owned a home in Gunnison in a so called flood zone and all was good. cost me about 86 bucks a year on top of my reg ins. the gov looks at 100 year floods to figure their nonsense.if you dont live below a dam and the builder followed codes for the area IE pressure treated lumber in the crawl space your fine. there was a code number I had to have to show the home was compliant to get ins that the realtor gave me in a 2 minute call. could be as simple as a high water table to be considerd a flood plane, so look into it more first. talk to neighbors, sure all is fine
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Old 09-09-2010, 08:50 AM
 
4 posts, read 32,782 times
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I'd like to know what insurance company you had when living in Gunnison that was that cheap. The quotes I received from various large insurers was outrageous. $3600 was the lowest quote from State Farm. I checked Nationwide, Farmers, Allstate, etc. Also, I haven't a clue if the builder followed codes for our area back in the late 80's. How would one find that out?

But overall I would like to see if anyone experienced purchasing a home where the realtor did not disclose that information.
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Old 09-09-2010, 10:15 AM
 
Location: Colorado
486 posts, read 1,167,722 times
Reputation: 639
Quote:
Originally Posted by rlemoine View Post
Does anyone know if there are repercusions if a home is purchased in 2002 and are just finding out in 2009 that they are in a flood zone and need to have flood insurance?

Apparently a FEMA flood study was done in 1998 and from what I understand the Realtor should disclose this information. Also, our mortgage company didn't know this either. We have been paying on our Mortgage for over 6 years before we were notified by our Mortgage company and then later by FEMA that we are in a flood zone and require Flood Insurance coverage.

Had we knew when we were interested in purchasing the property that it was in a flood zone, we would have passed on the purchase. I would like to see if there is any way we can recitify or even possibly sue a Realtor for not disclosing this information, and if yes, how does one start the process? Thank you to anyone that can provide advice or may have experience the same problem.
Okay, where in Colorado are you located?

Here's what you need to know: after Hurricane Katrina in 2005 FEMA went around the country re-zoning and updating flood maps. Hundreds and thousands of homes that were never in a flood zone, suddenly were determined to be in a flood zone. FEMA redrew Colorado's flood maps in 2007.

I had purchased a home in 2005 in Canon City and suddenly, in 2007 we got notice from FEMA that it was all of a sudden IN a flood zone. My house is over 60 years old and has NEVER flooded, not even remotely. We were notified by our mortgage company that we were now MANDATED to purchase flood insurance. And it is NOT cheap as another poster indicated.

If you live in this area, I can give you heads up on the cheapest place to purchase flood insurance. Lord knows, we have been through all the agencies trying to find a decent price.

Here's the kicker: my next door neighbors are not in the flood zone, the house across the street is not in a flood zone and the people behind us are not in a the flood zone!!!!

As you can imagine we are insanely FURIOUS with FEMA for dumping this on us. We had an affordable mortage and all of a sudden we were mandated to pay $2000 extra a year for flood insurance on a house that is a mile from the river and has never flooded in it's lifetime!

So, if this is what happned to you, then you have no legal recourse. You could pay BIG bucks to have your own survey done and contest the FEMA ruling, but good luck with that. i've met zero people who have been succesful with that and they paid a fortune for it.

If your house was already in a flood zone before you purchased it and it was not disclosed by the seller on the disclosure form or by the realtor in the listing information (usually in the fine print) then you may have a case. If you have a mortgage, the mortgage company is also supposed to check into if the property is in a flood zone. In is in their best interest to do so, so i don't know why they wouldn't.

It sounds like you are in the same boat as we are: FEMA rezoning AFTER you bought the property. You have three choices:
1) live with it
2) contest it at great financial cost
3) sell your house.

I am selling my house. I figure if someone at least KNOWS they are purchasing a house in a flood zone beforehand, then it won't be as bad as finding out after the fact. Then they can budget for it.

Oh, and did I mention that being reclassified in a flood zone dropped the value of our home by $30,000? (as per the appraisal we had done in 2009)
So we paid more than our house is now worth due to FEMA's rezoning.

Wish I hand better news to share with you, but there is nothing fun or redeeming about flood insurance in Colorado.

(At first we were pysched every time it rained, thinking that hey - now we have flood insurance, maybe we can get a new basement out of this! But then we read the fine print and saw that our deductable was $5000!!!!)

Plus, the flood insurance has gone UP every year since then.

So you just can't win for losing with flood insurance.

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Old 09-09-2010, 12:29 PM
 
4 posts, read 32,782 times
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Thank you so much for this! I'm going to print it out and keep w/me when our community meets with the Boulder County Commissioner's office to plead with them to NOT ADOPT FEMA LATEST STUDY. So that's where I live, in unincorporated Boulder Country.

BTW, a good part of the people in this community are engineers, geologists, and scientist, and they are screeming mad. One of the ladies that is leading this plea is doing her research, and you will be astonished to see what FEMA has done after Katrina. They have re-mapped every area of the U.S. and SURPRISE, a lot of states are being re-zoned as being in a flood zone and communities are rising to fight FEMA and FEMA is backing down... There are many factors that will prove FEMA wrong, one of them being somthing like the statistical data of flood claims in our state, it's like 146 total. Let's see, I'm not a mathematician, but if this is the amount of claims since say 2000, how does that measure to the area's population? I would like to think that percentage would be extremely low! Also, people in our neighborhood are getting excemptions done. So why then is the data done by a 3rd party expert so contrary to FEMA study? Stay tuned!
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Old 09-09-2010, 12:39 PM
 
Location: Colorado
486 posts, read 1,167,722 times
Reputation: 639
Quote:
Originally Posted by rlemoine View Post
Thank you so much for this! I'm going to print it out and keep w/me when our community meets with the Boulder County Commissioner's office to plead with them to NOT ADOPT FEMA LATEST STUDY. So that's where I live, in unincorporated Boulder Country.

BTW, a good part of the people in this community are engineers, geologists, and scientist, and they are screeming mad. One of the ladies that is leading this plea is doing her research, and you will be astonished to see what FEMA has done after Katrina. They have re-mapped every area of the U.S. and SURPRISE, a lot of states are being re-zoned as being in a flood zone and communities are rising to fight FEMA and FEMA is backing down... There are many factors that will prove FEMA wrong, one of them being somthing like the statistical data of flood claims in our state, it's like 146 total. Let's see, I'm not a mathematician, but if this is the amount of claims since say 2000, how does that measure to the area's population? I would like to think that percentage would be extremely low! Also, people in our neighborhood are getting excemptions done. So why then is the data done by a 3rd party expert so contrary to FEMA study? Stay tuned!
There was a segment on NBC Nightly New's Fleecing of America last spring that dealt with exactly this issue (FEMA making everyone else in the country pay for the aftermath of hurricane Katrina via their flood map rezoning).

I bet you could still find it on their website.

Good luck up there in Boulder - keep us posted!
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Old 09-09-2010, 02:22 PM
 
Location: Wherabouts Unknown!
7,735 posts, read 15,717,430 times
Reputation: 9191
Surprise! Surprise! Sounds like FEMA is in bed with the insurance companies. Your plight makes it obvious that FEMA is just another scam to steal money from common citizens and funnel it up to the big boys with already deep pockets. The greedy SOBs will never have enough until thay steal every last dime from us.

I'd like to see flood insurance, earthquake insurance, etc abolished. If someone chooses to live in areas prone to natural disasters, then let those folks be repsonsible for repairs and/or rebuliding....out of their OWN pockets. The folks who live in a governement declared flood zone that is not actually a flood zone in reality would not be mandated to send their hard earned money off to a greedy insurance company. Only If a flood actually ocuureed would you then encounter an expense.

Last edited by CosmicWizard; 09-09-2010 at 02:30 PM..
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Old 09-09-2010, 04:20 PM
 
4 posts, read 32,782 times
Reputation: 13
Thank you guys and gals (maybe) for your pinpoint comments. I will take these with me to the Commissioner's hearing. I love your comments CosmicWizard, they are right on the money. Obama Care? Well then let Obama reform the RIP OFF INSURANCE COMPANIES!!! Insurance is why our health care system is so messed up. Make the hardpaying working people pay for everyone else. This latest fire in Boulder... what do you bet all of our home owners insurance will see an increase yet again this coming year and oh by the way they don't have to let us know they are increasing! i know an agent (Farmers) that is a very rich man. He started his business in the early 80's worked in his agency for 5 years, and since then never has to go to work again. He build his wife a dream-home mansion and they live the high life. Tell me there isn't something wrong with that? He lives better than some Doctors and Lawyer I know.
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Old 09-09-2010, 04:35 PM
 
8,318 posts, read 23,927,273 times
Reputation: 8974
Quote:
Originally Posted by CosmicWizard View Post
Surprise! Surprise! Sounds like FEMA is in bed with the insurance companies. Your plight makes it obvious that FEMA is just another scam to steal money from common citizens and funnel it up to the big boys with already deep pockets. The greedy SOBs will never have enough until thay steal every last dime from us.

I'd like to see flood insurance, earthquake insurance, etc abolished. If someone chooses to live in areas prone to natural disasters, then let those folks be repsonsible for repairs and/or rebuliding....out of their OWN pockets. The folks who live in a governement declared flood zone that is not actually a flood zone in reality would not be mandated to send their hard earned money off to a greedy insurance company. Only If a flood actually ocuureed would you then encounter an expense.
Oh, your point of view will not be popular with the folks over in the fire area in Boulder. Different hazard, but the same issue.

Ed Qullen wrote some on this several times, one article of which I cited over on the Boulder fire thread, but this one is good, too. I'm quoting a salient part below ( Sign up now for the Stupid Zone ):

Quote:
Instead of passing new restrictions, each state could use its experts to produce a map with official “Stupid Zones.”

You'd still be free to do whatever you liked with your property in a Stupid Zone. However, you'd manage on your own with no property services from the government. No road plowing or maintenance, no rescue, no flood insurance, no deputy sheriffs, no rebuilding assistance, no subsidized electric or telephone service, no standing to sue in court for property problems, no fire-fighters dying to protect the trophy-home lifestyles of the rich and famous.

The Stupid Zone would thus allow people to continue building whatever they liked, wherever they liked, and so the apparently endless real-estate boom could continue unabated. Outsiders buying property could find out about the Stupid Zone if they wanted to, but no one would be required to tell them about it.
In another article, he said this ( How to reduce taxes and preserve private property rights ):

Quote:
Perhaps this sounds hard-hearted, but at least it's consistent. I grew up near Greeley, and we took many Sunday drives up Big Thompson Canyon from Loveland to Estes Park. All along the way, there were houses along the river whose yards were posted with “No Trespassing” and “No Fishing” signs.

Fair enough. It's their property, and if they don't like the public, that's their business.

Then came the Big Thompson flood of 1976. And there were all these property owners with their hands out, asking for public money so they could rebuild. If we weren't welcome before the flood, why did they think they had any right to our money after the flood?

Last week we saw plenty of public spending, from state and federal taxpayers, to protect property that bristled with “No Trespassing” signs, build in a forest that was ripe for fire. The declaration of a Stupid Zone years ago might have averted some of the heartaches and loss, and it certainly would have saved money.

So, the next time you run into a candidate for public office, especially one who supports economy in government, ask him how he feels about Stupid Zones. They're the ideal way to cut taxes and preserve individual rights, but I'll bet you won't hear much support for the idea.
I agree with you, federal flood insurance only encourages people to build stuff in flood plains, just like using brave Forest Service personnel (whose job it should be to manage the public National Forests) and tons of taxpayer money to defend private structures on private property from wildfire only encourages people to build stuff in harm's way.
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Old 09-09-2010, 07:23 PM
 
Location: Colorado
486 posts, read 1,167,722 times
Reputation: 639
"Stupid Zones" - that's hilarious!

I guess the enraging thing about my special little flood zone is that we are nowhere near water. The zone our house is in (and NONE of our neighbors) is such because the storm water system may back up and the water may jump the curb and may lap at our driveway. But that has never happened. So call me stupid, but the fact that our house is old in an established in-town neighborhood and that my next door neighbor (ten feet away from my house) is NOT is a flood zone, makes me well... just stupified.
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