Flood Insurance Sun City Center versus OTOW in Ocala (Tampa: HOA, condo)

[Blanco111]

At this point, I am considering purchasing a new home for about $300,000 in either of these two retirement communities. I read all of Tampa is in a flood plain. Is OTOW in a flood plain? How much would flood insurance be in each of these two retirement communities? Would regular home insurance be higher in SCC? If so, by how much?

Aside from the cost of insurance, would I have significantly less chance of home damage (hypothetically same exact house) in OTOW than in SCC when hurricanes occur? I have no big desire to be in either Ocala or Tampa. It's a model of house, value and the retirement community itself I liked.

[BucFan]

I guess one could argue that all of Fla is a flood plane. That's what my insurance girl reminds me when I tell her I won't be carrying it. My biggest concern is the sewer backing up and causing that sort of flooding, not from the surge from the gulf.

Sun City is about 7-10 miles inland and I'd venture to guess most residents don't carry flood insurance, or at least it's not required by their lender.

I lived in nearby Valencia Lakes right adjacent to SCC and once polled residents there on a smaller message board, and it was 50-50......lots of man made lakes in that community, so maybe that concerned them.

[Blanco111]

Thanks for responding. I think the part of SCC where I'm looking has a man-made lake in it. Minto (the builder) wasn't too clear about this issue on the web site. I'm planning to go down to Florida next summer to check out a few retirement communities. I will have to get a definitive answer to this flood insurance question
and figure in the cost before I buy.

[BucFan]

Fema has a program where you plug in worst case scenarios Cat 5 storms and the surge is pretty far reaching and the Manatee River and Cypress Creek can cause flooding in surrounding areas......

[ApolloBeachRetiree]

Originally Posted by Blanco111

Thanks for responding. I think the part of SCC where I'm looking has a man-made lake in it. Minto (the builder) wasn't too clear about this issue on the web site. I'm planning to go down to Florida next summer to check out a few retirement communities. I will have to get a definitive answer to this flood insurance question
and figure in the cost before I buy.

From the company which insures us:

Should I have Flood Insurance if I’m not in a Flood Zone?

[cupper3]

It depends on whether you are mortgaging or not.

If mortgaging, you will HAVE to have insurance.

If not, you have a decision to make. How much is the insurance, and how much are you willing to take a risk your house will be impacted.

In my case, I bought my condo cash, and am going bare. In 12 years, if nothing happens, I will be money ahead compared to the insurance because I am in a flood zone. Now, my HOA does cover the exterior, and I would be responsible for renovating the interior, so it is a bit different than a house.

It made sense to me. It depends how risk adverse you are.

[upgrader]

I think you are making a valid, but not often stated thought. Insurance costs money. It should, you are dealing with a business that's taking on your risk. If you can afford to self-insure, you will save that money.

Hey look, I occasionally play the lottery. I imagine the numbers I'd buy, read the numbers that hit the next day, and realized I made a buck. To me, that's what it means to self insure if you can afford it.

Originally Posted by cupper3

It depends on whether you are mortgaging or not.

If mortgaging, you will HAVE to have insurance.

If not, you have a decision to make. How much is the insurance, and how much are you willing to take a risk your house will be impacted.

In my case, I bought my condo cash, and am going bare. In 12 years, if nothing happens, I will be money ahead compared to the insurance because I am in a flood zone. Now, my HOA does cover the exterior, and I would be responsible for renovating the interior, so it is a bit different than a house.

It made sense to me. It depends how risk adverse you are.

[Blanco111]

Originally Posted by upgrader

Hey look, I occasionally play the lottery. I imagine the numbers I'd buy, read the numbers that hit the next day, and realized I made a buck. To me, that's what it means to self insure if you can afford it.

That's pretty funny!

[The Villages Guy]

Originally Posted by cupper3

It depends on whether you are mortgaging or not.

If mortgaging, you will HAVE to have insurance.

If not, you have a decision to make. How much is the insurance, and how much are you willing to take a risk your house will be impacted.

In my case, I bought my condo cash, and am going bare. In 12 years, if nothing happens, I will be money ahead compared to the insurance because I am in a flood zone. Now, my HOA does cover the exterior, and I would be responsible for renovating the interior, so it is a bit different than a house.

It made sense to me. It depends how risk adverse you are.

You are NOT required to have flood insurance, just becasue you have a mortgage. There are other factors which play into the requirement to carry flood insurance, such as being in a certain flood zone and not having an elevation certificate.

[cupper3]

Originally Posted by upgrader

I think you are making a valid, but not often stated thought. Insurance costs money. It should, you are dealing with a business that's taking on your risk. If you can afford to self-insure, you will save that money.

Hey look, I occasionally play the lottery. I imagine the numbers I'd buy, read the numbers that hit the next day, and realized I made a buck. To me, that's what it means to self insure if you can afford it.

Well, a lottery is purely a random event.

Self insuring is taking a calculated risk, just the same way insurance companies do. In my case, I am willing to take a 12 year window (I am in year 3, so only 9 to go) that a catastrophic flood will not occur. There are some indications, some emphasized, that the flows that cause hurricanes to hit the Caribbean and then Florida are moving north. That does not deal with the issue of those hurricanes that form in the Caribbean, but those flows usually head west.

So yes, it IS a risk, but a calculated one, unlike lotteries. I am OK with the amount of money at risk, and obviously, my situation is not anyone else's.