Steve,
Just touching base to see how you made out in the home purchase process.

Yours for Service,

James Rembish
REALTOR®, SRES
RE/MAX Achievers
Offices in Chatham, Madison & Summit
Servicing Essex,Hudson,Middlesex,Morris,Somerset and Union Counties.
Awarded Prestigious Million Dollar Sales & Marketed
Email: jamesrembish@remax.net
Website: http://www.jamesrembish.com
Direct: 908-462-4802
Office: 908-522-9444
"Turning For Sale Signs into SOLD"
The highest compliment I can receive from you is the referral of your friends, family and business partners.
Thank you!

General rule, ALL properties are in danger of flooding if at the top of a mountain. Most people when thinking of flood zones picture lakes overflowing but that is not the only case. There are underwater streams, soil that doesn't absorb water to well causing flood situations, also if you have a pipe that breaks or a pool that cracks and floods your house or basement. All these situations would be covered only with flood insurance.

Designated flood zones by Fema to look out for are in 100 year or 500 year zones, obviously the 100 year zone being of more concern. Recently more and more areas are being considered flood zones that were never previously due in part to Hurricane Katrina and the cost to the federal government and insurance agencies to help those not insured or where the damage put insurance companies in the hole. This is how they make more money to cover...

For $2,000, sounds like it's in a pretty likely to flood, flood area. Keep in mind, if in a flood zone you'll have the same issues when trying to resell later.

Don't take advise from your agent on this, they are not experts in this field and your attorney can care less as well. You'll need to determine if the deal is a real good one or not, did this property ever flood before/recently and if so how often? Every time it rains? Check the seller disclosure and check the basement for evidence.

If the property doesn't or hasn't flooded, I would only then bother to get an elevation certification to present to the mortgage company to avoid needing flood insurance. Keep in mind, if the property is prone to flooding, you'll want the insurance.

Two more important things to find out in addition to the elevation.
One more thing, does the property have a sump pump?
Is the land graded away from the house or toward it?

The Sellers Disclosure Statement that you signed when the offer was submitted should have disclosed that information(the home was in a flood zone). and your realtor who showed you the home should've known that the property is in a flood zone. ~In any case if you love the house and your getting it for less then asking....stick with it and get the flood insurance...as for the $2000 bill that crazy --has the home been flooded before(this should also be disclosed on the Sellers Disclosure Statement)? I know that typically Cranford and some parts of Kenilworth flood during crazy storms but thats over by the canoe place.

Steve,
What is the flood zone classified as? Different classifications will put you at different risk of flooding.
$2000/year sounds extremely high. If you do proceed, shop around for a better price. I have an agent who sells flood insurance and would be happy to give you her contact number. Just reach me via my Trulia profile or my website, below.
My understanding of elevation certificates is that most insurers want them. If your property doesn't have one, that could be why the insurance is so high! Maybe you can split the cost with the sellers???
What you should do might very well lie in answering the above questions. Find out what classification the property is in. There are 100 year flood zones--interpreted to mean that the area floods every 100 years and then there are direct, in the path of the water zones which is the highest risk level. Once you find out what your classification is, shop around for insurance. You will probably find that en elevation certificate will come in handy and most likely reduce your insurance costs.
It's good your attorney has given you the 14 days to get this straight. Feel free to contact me for additional help. I sell at the shore and we run across this all the time!

Steve,

I strongly suggest you walk away. That's one of the criterias you should look for in a house--that it is NOT in a flood zone area. I remember clearly during hurricane Floyd when many of my neighbors' houses in the street flooded during hurricane Floyd. And we are not in a flood zone area. It doesn't matter if the basement has a sump pump. When the outside is flooded then running the pump will be a futile effort. Thankfully, my house had a much higher elevation. And wow, an annual $2000 flood insurance? That is really raising a red flag. That dream bargain home will turn into a nightmare.

I would encourage every home buyer and owner in NJ to look into flood insurance. We live in a coastal state, with preserved wetlands, swamps and tidal marshes and we're prone to flooding.

I would suggest you contact other insurance companies, find out when the last flood there was and what claims were made.

If it's the house for you, then it will be your home. Take the extra precautions and protect youself and your property.

Click here for more info on home owners insurance..
http://activerain.com/blogsview/877251/Insurance-Savings-for…

Though it was written for homes in Manahawkin, it'll give you some more ideas of what to look for in homeowners insurance policies.

Good Luck!

Laura Giannotta
Keller Williams Atlantic Shore

Hi there, good that this issue surfaced during attorney review - there is standard contract language designed to do just that. Think this one through - mainly for your own comfort level - your reservation regarding a flood zone will surely turn into a similar reservation on the part of potential buyers when you go to sell.

All things being equal - this is one of those things you'd rather not have to worry about.

Best,
Jeannie Feenick
Search and connect at http://www.feenick.com