Home Buying in Roseburg>Question Details

jkallisch, Home Buyer in Corona, CA

what does it mean when it says "not in flood plan"?

Asked by jkallisch, Corona, CA Wed Oct 16, 2013

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I live and lend in Roseburg, Oregon, where you indicated you are looking to buy, so allow me to speak about our local issues. A flood plain is the area that HAS flooded in the past - up to 100 years ago. If you obtain a conventional or government backed loan, you are required to have flood insurance on your home - just like you are required to have regular homeowners insurance as well. Rates for that insurance vary greatly. I live next to the Umpqua river and pay +/- $400 per year for the maximum coverage. I've seen other homes in our area over a mile from a body of water, but in a low lying area, pay more for less coverage. In this day and age, if the home is in a flood plain, the seller should (or your should ask for) an elevation certificate. A professional surveyor with GIS technology will map the house and all improvements on the property and compare it to the flood map. Insurance companies rely on that certificate to determine your premiums. One more note: Although insurance premiums are set by FEMA, so all agents should offer the same price, like anything, make sure you are dealing with a quality agent that knows what they are doing - that way you won't get stuck overpaying for flood insurance.
1 vote Thank Flag Link Wed Oct 16, 2013
I believe someone is trying to say flood insurance is not required. With the way FEMA keeps changing their maps - I would say always check into the property further to be sure.
0 votes Thank Flag Link Wed Oct 16, 2013
As Kelly suggested, flood insurance can add a litte exta expense to owning a home and can be a deal breaker.
Here in Flordia, a homeonwer paid for 2013 coverage, $1,200 for flood insurance.
The 2014 flood insurance arrived the beginning of September for a whopping $46,000!
The montly insurance premium, $3,834, dwarfs the morgtage payment.
Unless you can pay cash, be self-insured, or trust those DC dolts and insurance companies to do the right thing, at this time, choosing "HIGH AND DRY' would be a good choice. Don't think for a mintue this is only a Florida issue.
0 votes Thank Flag Link Wed Oct 16, 2013
Homes that are designated as being in a flood plain are homes that are close enough to a body of water that they will likely get flooded should that body of water rise. There are varying levels of being in a flood plain. If you are in the path of flood waters, you are required to carry a home owner's insurance policy that also covers flooding - these are very costly. Not being in a flood plain is a great thing! No risk and no added cost for insurance.

Kelly Gebler, Principal Broker/Owner
Cornerstone Group NW
0 votes Thank Flag Link Wed Oct 16, 2013
This means the property is not located in a FEMA designated Flood Plain and will not require flood insurance. For more about Flood Plains and Flood insurance check out this site. http://www.FloodSmart.gov
0 votes Thank Flag Link Wed Oct 16, 2013
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