Flood Plains- Worth the Risk?

When moving to, or within the lowcountry, we all have concerns about flooding, especially when it could mean pricey additional insurance. Here is all you need to know about Flood Plains when searching for your new home in Charleston.

First clarification: EVERY area is technically a flood zone. A lot of my clients ask “is this property in a flood zone?” but that’s not what they really want to know. What they need to be asking is “what flood zone is this”?

What determines the flood zones? The Federal Emergency Management Agency (FEMA) maps areas across the country and labels them based on their flood risk or type of flooding. These zones are depicted on a community’s Flood Insurance Rate Map (FIRM) or Flood Hazard Boundary
Map. Zones are broken into low, moderate and high risk areas based on flood-ability.

If your property is in a zone designated as a Special Flood Hazard Area (SFHA) and you are obtaining a government backed loan you will be required to obtain flood insurance. It is also important to note that flood zone boundaries can change, so a property you purchase may be moved into a higher risk zone at any time.

“For example zones with a letter grade of A or V are considered high-risk areas with a one in four chance of flooding during a 30-year mortgage period,” Kin Insurance states.

For detailed information on each flood zone click here.

So what can you expect if you find your dream home in a high risk flood zone? The average annual cost of a National Flood Insurance Program insurance policy is $700, but can vary. It’s important to keep in mind this coverage doesn’t necessarily cover all of your home or potential loss- weighing the risks of a flood prone property vs your dream location is an important topic, and I am here to help.

Let’s find you the home you’ve been looking for!