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I took a look at a house today in Narragansett (built in 1945). The new FEMA map indicates Zone X. I don't think the new map is correct at all.
First, since Hurricane Carol in 1954 the shoreline has eroded 6 feet. During this same hurricane flooding waters reached into the lot. I have pictures since our old house was on the same street.
Now with an eroded shoreline, flooding will come 6 feet farther into the lot reaching the footprint of the house.
I think FEMA needs to be more forward thinking with their revised maps. A hurricane like that of 1938 would totally wipe out the house I looked at.
Hi,
A property we are interested in is listed as "high risk" on floodsmart.gov website. But, on checking with the insurance agents we 've found that the property is only shown as being in zone "X". The cost of flood insurance is between 412-458/yr.
We brought up the issue of the house being listed as "high risk" for flood with the seller & they 've got in touch with a land surveyor to get a elevation certificate. The surveyor came down to have a initial look at the property and their assesment is that the structure itself should be at a higher elevation that shall prevent any flooding to the structure. They are anyway going to do the official survey for the purpose of elevation certificate.
This is what I'm planning to do:
1. Make an offer (2-3%) under asking as I feel there's still "some" amount of risk (with respect to flood zone) and so the property itself might not warrant the list price. Also, I would need to set aside ~13k for the flood insurance, if the lender forces it. My agent feels given the current information the list price still seems a fair value.
2. Build in the contingency that the seller has to get a elevation certificate that shows the property being above the "base flood elevation" level for the area.
Knowing this information, I want to hear perspectives that will aid me in making an informed decision.
Personally I wouldn't go near a home in a flood zone. With global warming and more extreme weather events on the horizon, I wouldn't risk it.
I took a look at a house today in Narragansett (built in 1945). The new FEMA map indicates Zone X. I don't think the new map is correct at all.
First, since Hurricane Carol in 1954 the shoreline has eroded 6 feet. During this same hurricane flooding waters reached into the lot. I have pictures since our old house was on the same street.
Now with an eroded shoreline, flooding will come 6 feet farther into the lot reaching the footprint of the house.
I think FEMA needs to be more forward thinking with their revised maps. A hurricane like that of 1938 would totally wipe out the house I looked at.
In our case, it was actually admitted they had planes that flew over and then they sent letters out to the residents around wherever the bodies of water were. They did not know which homes owned to the lake, nor which homes owned 30' from the lake. (Although in our case it was good we got the notices because the poa office was no good at all and basically said it's every man for himself on this.)
The govt was in touch with the county administrator and told her she was only required to put a notice in the local paper. Well, one side of the large county shopped and did a lot of business in and felt connected to one large city. The other side the same with a medium city. The county office was in a tiny sweet town whose only paper was a step above pennysaver. Cute and all. But not the typical news newspaper. And that's where she put the info. Cheaper and fewer people outraged until she could figure out something else.
Long story but yes...FEMA needs to get better at this down to local govts have to get better at this.
If this property is below the required FEMA elevation, then your insurance could be $4000-$6000/year.
You never want to be below BFE (base flood elevation) unless the home is very old - pre 1970 something. then it was built before flood zone rules and you are usually grandfathered in for cheaper insurance.
Make sure your addition to the contract is rock solid...that the homes BFE (base flood elevation) is AT OR ABOVE Fema's current required BFE. THis is a huge red flag if current survey says it's below BFE.
You should review the Elevation Certificate and discuss with surveyer as needed.
BFE is difficult to determine. My place is listed at 11 BFE. But remember that is not from the sidewalk it is from sea level.
Easy to get BFE hard to determine your homes elevation above sea level.
Also rates are going up on owner occupied homes on October 1st. If you close after that make sure you get rates in effect after October 1st, not rates as of today.
I own two homes in a flood zone. My primary and my beach house.
One thing that you should check with FEMA/NFIP if home ever had a FEMA claim
For instance I did not have flood insurance on my primary home and got six feet of water in Sandy. Fema cut me a check for 31,900 and I paid the rest and house looks fine now.
If you look at my flood insurance policy it states no flood claims ever. Which is true for insurance purposes my house never had a drop of water.
However, the 31,900 FEMA payout is a once in a lifetime payout per house, not owner. So person who buys my house maintains flood for 30 years, mortgage is paid off and flood insurance is dropped and then they get flooded and file a FEMA claim they will get denied and not get a penny as I used the lifetime money.
Buy a house that never had a fema claim is good. As if flood insurance gets too high and it is your primary home you can always drop fllood as you have a safety net that first 31,900 in damage is covered.
Well while our personal experience was fine the house was totaled in the flood in 2010, a complete loss. I'd say that would diminish the value eh?
Not 100% true. As long as house was not declared ICC less than 50% damaged and house is pretty much brand new it is good.
If house was totaled and rebuilt higher great.
House had minor damage and fixed no effect.
House had damaged not fixed fire sale.
House had no damage not so great.
Why, nine months after sandy the houses in the flood zone that got no water guess what look like crap. Houses that were flooded got 200K makeovers from Uncle Sam via NFIP and are on the market. Owner did not pay for renovation so his house looks great.
Meanwhile you got no water, big deal. Water flow is random. I go zero water in Irene and six feet in Sandy.
Homes going for most are homes with between 40-49% damage with insurance.
Not 100% true. As long as house was not declared ICC less than 50% damaged and house is pretty much brand new it is good.
If house was totaled and rebuilt higher great.
House had minor damage and fixed no effect.
House had damaged not fixed fire sale.
House had no damage not so great.
Why, nine months after sandy the houses in the flood zone that got no water guess what look like crap. Houses that were flooded got 200K makeovers from Uncle Sam via NFIP and are on the market. Owner did not pay for renovation so his house looks great.
Meanwhile you got no water, big deal. Water flow is random. I go zero water in Irene and six feet in Sandy.
Homes going for most are homes with between 40-49% damage with insurance.
Well I was no longer living in the house when it flooded so I don't know what they were given for it but it was bulldozed and the area was declared not build able.
Well I was no longer living in the house when it flooded so I don't know what they were given for it but it was bulldozed and the area was declared not build able.
That sounds like a FEMA buyout. They will do that in areas that have chronic flooding or major events close together. The owners I familiar with who took this buyout (in truth they really had no choice) received market appraisal minus 2%.
FEMA has broached that subject with a few of our more....contrary... property owners here who were threatening lawsuits over one thing or another and hindering our flood control efforts. They (owners) haven't said much since.
We dropped the property under question when we heard FEMA is going to raise rates starting October.
Better safe than sorry. I can almost guarantee you that this won't be the last rate hike. Flood insurance is highly subsidized and one of these days we will need to come to our senses.
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