Buying a home in a flood zone doesn’t necessarily mean you have to walk away from the property. However, it does mean you should understand the potential risks and insurance requirements before making an offer. Flooding can cause extensive damage to a home’s structure and belongings, and standard homeowners insurance typically does not cover flood damage. Here are three things to consider before buying a home in a flood zone.

1. Find Out What Flood Zone the Home Is In

Not all flood zones carry the same level of risk. Before buying a property, check its flood zone designation and find out what that designation means for the property. You should also consider the home’s elevation, its history of flooding, and whether the area has experienced flooding that may not be reflected by the current flood map.

2. You May Need Separate Flood Insurance

A standard homeowners insurance policy generally does not cover damage caused by flooding. If you purchase a home in an area with significant flood risk, your mortgage lender may require you to carry a separate flood policy.

Before purchasing the property, get a flood insurance quote so you understand what the coverage could add to your monthly or annual housing costs. Ask an insurance professional what the policy covers, what exclusions apply, and whether there are coverage limits that could affect your ability to fully recover after a flood. 

3. Understand the Home’s Total Cost and Risk

The purchase price isn’t the only expense to consider when you’re buying a home in a flood-prone area. In addition to your mortgage, property taxes, and standard homeowners insurance, you may need to budget for flood insurance, higher deductibles, and potential costs associated with protecting the property from future flooding. 

Call Smith Insurance Agency of West Virginia, Serving Kingwood, WV, Today

If you’re ready to learn more about flood insurance, the team at Smith Insurance Agency of West Virginia is here to help. Reach out to our team to learn more about how we serve our customers in Kingwood, WV, today.