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Cbennett35, Home Buyer in Raleigh, NC

Part of this property is in a floodplain, but not the structure. If we buy it, will we need flood insurance?

Asked by Cbennett35, Raleigh, NC Sat Feb 25, 2012

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M. Bennett,

The responses thus far have given you a good starting point. The complete answer is "it depends." If you are NOT obtaining a loan and have no intention of doing so, then flood insurance is NOT required (although certainly not a smart move to avoid Flood Insurance blindly).

However, presuming you intend to finance the property now (or at some time in the future), the requirement for Flood Insurance will be determined by the lender/lien holder/investor requirements.

It is true that FEMA maps may change from time to time. However, just because the lot is currently in the flood plain does not mean you will have to have flood insurance, so don't despair.

You may hire a Surveyor, as noted by Mr. Colvin, and request a current Field Elevation Certification. The Surveyor should note the elevation of the flood plain, the foundation, as well as the 1st floor elevation.

From my 25+ years of experience, I have found that if the house in on a crawl space or slab, and the 1st floor elevation rests entirely above the flood plain, then FI will not likely be required. However, if there is liveable space in a basement, the basement floor will most likely have to rest above the flood plain.

Caution: Different investors have different requirements. So consult with your lender to discern their investor requirements, and don't assume that all lender's requirements will be the same.
0 votes Thank Flag Link Sun Feb 26, 2012
The short answer is yes, there are many stages of flood insurance and most insurance companies will now require an Elevation Certificate to quote Flood Insurance on any property.
Michael
0 votes Thank Flag Link Sat Feb 25, 2012
The FEMA maps change over time. Check with your current insurance company, provide them with the address and they should be able to help you with your question.
Merry Ann Cutler/REMAX United MerryAnn@MerryAmm.com
0 votes Thank Flag Link Sat Feb 25, 2012
The easiest way to find out is to either ask the current owner if they are carrying a flood policy, or, call your insurance agent and have them run a klue report on the property, which will identify the flood plain type. If it is in a 100 year, you usually don't need any additional insurance.
0 votes Thank Flag Link Sat Feb 25, 2012
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