Buying a Home; Flood Insurance
Over the last few years the United States has seen an increased emphasis on disaster preparedness. Situations like September 11th and Hurricane Katrina reinforced the idea that it was necessary to be able to mobilize relief quickly and sustain stability in disaster affected areas.
One of the ways that FEMA has worked to be more proactive with disaster relief and prevention has been to identify potential areas vulnerable to flooding. Unfortunately, the unintended consequence has been that many home-owner's in vulnerable flood zones are being forced to purchase, often expensive, flood insurance.
Flood Insurance Unfair, but "For the Good of Buyers"?
You all are probably familiar with how upset many are with Obama's health care program, being forced to purchase insurance, fined if you don't and if you don't purchase one of his plans you get another 1% penalty. Well, unlike homeowner's insurance, flood insurance is regulated by FEMA. The pricing is based on the specific flood zone and coverage amount, which means that home-buyers aren't able to shop for more competitive rates. The current high prices for flood insurance can be 4 to 5 times higher than the cost for home-owner's insurance, and in many cases, this high cost has forced prospective home-buyers to walk away from purchasing their dream home.
Don't get swept away by lack of or misinformation:
It may seem unfair, and a situation offering limited choices, none of which are attractive, but when it comes to flood insurance, it's important to be prepared. Prospective buyers should research locations and be aware whether or not a property is in a flood zone. Our agency has been specializing in flood insurance, and we're available to answer questions. Berkshire Hathaway Realtors also have the necessary access and means to procure this information as well and proud to work with them.
Brandon Snell, 937-312-2846