Purchasing your own home—if for the first or second tine—is an exciting event that represents a new chapter in your life.

After researching homes in your desired area, you have found the home of your dreams: it is in the perfect spot, has the features you have been looking for, and the right price. Upon further inquiring you discover that your dream home in in a flood zone?

What does that mean? Should you still buy the home?buying a home

First and foremost, you must understand the risks of purchasing a property on a flood zone.Even if the home is in a low-risk zone, that doesn’t mean that there is no flood risk to your home.

You Will Need Flood Insurance

Don’t be fooled into thinking that just because you have homeowners insurance that you are covered. Homeowners insurance rarely covers flooding, so be sure to also purchase flood insurance.

In fact, homes in flood zones are more often than not required to have flood insurance before a lender will approve a mortgage. In fact, if you are taking out a government loan you will be required by federal flood insurance laws to purchase flood insurance.

Flood insurance is critical in keeping your home and possessions safe, as a flood can do a lot of damage and require expensive repairs. Flood insurance can help mitigate these costs.

Be sure to get an elevation certificate that will help determine your home’s flood insurance premium rate before closing.

Do Your Due Diligence & Research The Home

Before purchasing a home that is on a flood plain, it is essential that you do your due diligence and inspect the home yourself and with a respected, certified home inspector.

Check the home’s history, walk through it, and get it inspected and surveyed. Flood zone disclosure may not be mandatory in your area so be sure to ask before you close on the home!

If You Do Buy, Have A Plan

Ultimately, the decision to purchase a home located in a flood plain is up to you. If you do decide to purchase, have a plan to help mitigate any damage and know if you can afford the extra costs of flood insurance and premiums.

The professionals at Eric Merchant can help you through this decision thanks to our years of experiencebuying and selling a wide variety of homes and properties throughout the Midwest.

Find The Perfect Location For Your New Home Today

Contact The Agents At Merchant Of Homes