Should we be aware of Flood Insurance

[ZZGAMAZZ]

I certainly think there would be a significant detriment to market value if the buying public knew FEMA would deny claims for a specific home...

I vaguely recall having lived in New Orleans for a deacde about 3 decades ago that FEMA did not offer flood insurance.

 

[ZZGAMAZZ]

Yep - I just use the map feature in MLS and have a FEMA flood map pulled up on an alternate monitor. It's a breeze once you've done it a couple of times.

The constraint in this scenario is that an estimated 25% of all FEMA designations I obtain from Realist or the FEMA website subsequently are superceded by info that the mortgage company provides; consequently the comp flood zone designations are apt to be incorrect.

 

[Terrel L. Shields]

With record rains, don't you think the impact of Helene will be updated flood maps?

 

[David S. Roberson]

Wouldn't current maket data indicate local reaction to that type property?

 

[Zoe]

Insurance companies are getting really tough here. If a homeowner does not replace a roof within 18- 20 years from date of install, even if roof is functioning fine, they will not renew the policy.

I heard homeowner's insurance had gone up there. Flood insurance, i am not sure if it flood insurance rates are broken down by state or by the specific flood zone the property is located. I imagine some areas in other States from Helene are going to get some rate hikes.

Some of those properties may not have even been in a special flood hazard area from FEMA.

 

[Zoe]

True. Problem is, at least its my understanding, is that you can't buy FEMA flood insurance unless you are in a flood zone.

We had 9" of rain in 2 hours about 30 yrs ago in this area. A lot of houses got flooded that weren't in designated flood zones and they were screwed. HO insurance didn't cover the damage. This was a freak occurrence; nothing similar in recorded history in this area. People still got wet.



Required by the mortgage companies. No mortgage...its optional.

I think there are options in those cases where like the FEDS give natural disaster money to the States and then the individual homeowner has to apply with the State or Fed for assistance. I don't know how that works. You can't buy flood insurance from FEMA without being in a flood zone as far as I know.

I didn't realize N. Carolina and S. Carolina and some areas of east Tennessee got hit really bad. I am sure some properties were not in a recognized flood zone.

 

[Zoe]

Another thought is if any appraisers may be needed to assess pre-loss value. I don't know. That is outside my area of expertise. I don't know how many uninsured may have lost everything. Millions and millions of dollars in losses. I think about 150 dead so far. They expect that number to rise.

The water rose so fast in some areas, that people really were in deep trouble if they had not already left.

 

[Zoe]

Most certified or licensed appraisers are capable of being competent to give a pre-loss value appraisal particularly in the areas they work all the time. Food for thought.

 

[Terrel L. Shields]

Wouldn't current maket data indicate local reaction to that type property?

What about the large number of homes that got water in them in Helene and were assumed to be above the flood zone? A few years ago some houses flooded in a very local downpour that was mis-mapped somehow as to how high the river would get. "Above the flood plain" turned out to not be the case and several large homes were flooded. All the Corp of Engr. said was 'oopsy'.

 

[BRCJR]

I am 10 minutes from a Virginia town that was a disaster.

X Flood Zone areas had dwellings swept away in the creek that became a massive swollen river.

No one could have seen this coming, no one.