We are looking into purchasing a home that is located in a flood plain.

Asked by Becky, 47403 Tue Aug 25, 2009

We will probably be selling it againin 5 years, so we are concerned about the possible effect this might have on resale. Also, we will be putting 20% down and weren't sure if we are required to hold flood insurance on the property.

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Mnboy, , Minneapolis, MN
Mon Aug 31, 2009
I can't think of a flood plain area in Bloomington. Nine mile creek? Down by the Minnesota? I lived on the river bluff, the spring we had a lot of rain, it flooded, I was surprised how close the river came. You will need flood insurance. It was on structure only, no personal property. I have owned 14 houses in fourteen locations. We had a house in Rochester, Minnesota, near bear creek. 7 inches of rain, creek overflowed it 's banks. Our basement was flooded, it was not finished. Insurance pays for cleaning, new furnace, any other structural damage. It would pay for carpet and drywall if finished. Here is the unknown about flooding, if you are in the way of the current or you basement is very tight, the house can be knocked off the foundation or it can collapse from the pressure. My neighbor's foundation collapsed, luckily it was only one side.
There are a lot of choices out there. Today's market will punished a house by up to 30% for a location problem.
Web Reference:  http://www.hansen2hansen.com
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Kim Eisen, Agent, Twin Cities, MN
Tue Aug 25, 2009
Although there's no guarantee with flood plains, I would check the amount of times, if ever, that it has flooded when making a decision. This will also play into the resale outlook.

Kim Eisen
Realtor since 1980
RE/MAX Specialists
(651) 457-HOME (4663)
0 votes
Elizabeth Fu…, Agent, Wayzata, MN
Tue Aug 25, 2009
Your mortgage lender is almost certainly going to require flood insurance; you will also want to take out the owner's policy as well as the one that protects the lender, and you should take the owner's title insurance as well as the one that protects the lender. Be very careful with this; your real estate agent's due diligence should help you get the information you need and you can always call the consumer affairs department of the Attorney General for the state of MN to make sure of your rights and needed protections now and in the future as the owner of this property. I hope this helps. Liz, 612-986-4105
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Elizabeth Fu…, Agent, Wayzata, MN
Tue Aug 25, 2009
Your mortgage lender is almost certainly going to require flood insurance; you will also want to take out the owner's policy as well as the one that protects the lender, and you should take the owner's title insurance as well as the one that protects the lender. Be very careful with this; your real estate agent's due diligence should help you get the information you need and you can always call the consumer affairs department of the Attorney General for the state of MN to make sure of your rights and needed protections now and in the future as the owner of this property. I hope this helps. Liz, 612-986-4105
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