Over the years, civilizations have been built near a water source, and cities thrived there. Besides, it is always better to have a body of water in your locality. However, it can be troublesome if the water is in your basement. According to FEMA, even an inch of floodwater, can cost you around $20,000 to $25,000. However, it doesn’t mean that you cannot live in a flood zone. You should assess the risk and take other protective measures.
Should You Consider Building a Home in a Flood Zone?
Flood Zones
Based on the possibility of floodwater, neighborhoods in the US are classified as one of these three– high-risk, moderate-risk, and minimal-risk zone.
The high-risk flood zone is also known as the SFHA or Special Flood Hazard Areas. The code of this zone starts with A and V. If your house is in this zone, the probability of experiencing a flood each year is around 1%.
Compared to the high-risk flood zones, moderate-risk flood zones have a lower probability of flooding. And the code of these areas starts with B and X (shaded).
Minimal-risk flood zones are less likely to experience a flood, and the code for this area starts with X (unshaded) and C.
If your home is in moderate or minimal-risk flood areas, don’t think that it will never experience a flood. According to the FEMA, despite being in the low-flood risk areas, there is every possibility of experiencing a flood.
Check this FEMA Flood Map Service Center to find out whether your home is in a flood zone or not.
3 Risks of Purchasing a House in a Flood Zone
1. Reselling Can Be Difficult
Purchasing a house is a significant investment, and that’s why people prefer to purchase a home that is safe from floods and other natural disasters. If your house is in these flood zones and you are planning to resell it, you may not find suitable buyers for your house. Besides, one of the main reasons for people showing disinterest is that the home insurance cost in flood areas is higher.
2. Flood Damage
Flood damage can cause you both mental and financial damage. Even if the water level is not that high, it can cost you big bucks. For example, you may have to replace the drywall, flooring, and other furniture. Besides, floodwater can damage the entire structure of your house. Moreover, you can face mold growth problems in your HVAC ductwork.
Again, when there is heavy flooding, you may have to evacuate your house, and in the worst-case scenario, you will have to rebuild the entire house.
3. Flood Insurance Premium is Higher
Generally, home insurance doesn’t cover damages caused by floods or other natural disasters. If you want your house to be covered from flood damages, you will need flood insurance. And higher the flood risk, the higher the premium. Usually, homeowners have to pay around a premium of $600 to $700 in a high-flood risk area.
Conclusion
Before purchasing a house in a flood-risk area, ensure that you have the ability to financially recover from the potential flood damage. Otherwise, you should consider purchasing a house in comparatively safer areas.
