FEMA’s recent flood zone redistricting map across Northeast Pennsylvania put thousands of new homes inside of FEMA-designated flood zones. Being classified in a flood zone requires homeowners with a mortgage or applying for one to get flood insurance, which can amount to roughly $1400 annually in Pennsylvania.
You may not think that your home is in danger from a flood, but even a little bit of water can amount to serious financial cost. According to FEMA, a few inches of water in your basement or home can amount to $25,000 in repairs.
Flood zones aren’t just restricted to homes along the Susquehanna River and waterfront properties along Harveys Lake; homes in areas that experience heavy runoff, such as Danville or even Dallas, may still be classified in a flood zone even if they are not directly adjacent to water.
This guide will help you understand what flood zones entail, how flood insurance works, and what to look for during inspections of homes located in flood zones.
What Does It Mean to Live in a Flood Zone?
A flood zone is a geographic area defined by the Federal Emergency Management Agency (FEMA) that reflects the flood risk level in that region. FEMA categorizes areas from low risk to high risk, with maps that outline where flooding is most likely to occur.
If a property is located in a Special Flood Hazard Area (SFHA), it is considered high-risk. That means homeowners with federally backed mortgages are required by law to carry flood insurance.
Flood insurance is a special policy separate from your homeowner’s policy that protects the home and any associated belongings from flood damage. Homes in low-risk areas may be required to carry flood insurance as well.
It’s important to understand that flood patterns can be unpredictable, and homes located outside flood zones may be vulnerable to flooding and water damage. Conversely, homes in low-risk flood zones may never experience flooding, though they may still be required to carry flood insurance.
Risks of Buying a House in a Flood-Prone Area
If you’re looking to purchase a home and discover that it is in a flood zone, you may want to take extra precautions during the inspection and appraisal process.
Flood-prone properties can still be excellent investments, but there are additional risks you should be aware of:
- Property damage – Floodwaters can cause significant structural damage, ruin flooring, drywall, and electrical systems, and lead to costly repairs.
- Mold growth – Even minor flooding can leave behind lingering moisture, creating conditions for mold that can impact health and indoor air quality.
- Insurance costs – Flood insurance premiums can add hundreds of dollars to your annual housing expenses.
- Resale challenges – Buyers may be hesitant to purchase a home in a high-risk flood zone, potentially lowering resale value.
These risks don’t necessarily mean you shouldn’t buy a home in a flood-prone area, but they should factor heavily into your decision-making process.
Am I Required to Purchase Flood Insurance for My Home?
In most cases, flood insurance will be required by law or your lender if you live in a FEMA-designated flood zone.
- High-Risk Zones (SFHA): If the property is located in a FEMA-designated Special Flood Hazard Area and you’re financing with a federally backed mortgage, flood insurance is required.
- Moderate-to-Low Risk Zones: Flood insurance isn’t federally required, but many lenders still recommend or mandate it. Even homes outside high-risk zones can experience flooding, so many buyers opt for coverage as a safeguard.
- Cash Buyers: If you’re purchasing without a mortgage, you are not legally required to carry flood insurance. However, going without coverage means assuming the full financial burden if flooding occurs.
Because premiums can vary widely based on factors like elevation, foundation type, and proximity to water, it’s wise to request a flood insurance quote early in the buying process. This allows you to budget accurately and avoid surprises before closing.
What to Look For When Inspecting a Home in a Flood Zone
A thorough home inspection is one of the best ways to avoid costly repairs and protect your investment.
Generally, the first place you and your inspector will want to analyze is the foundation’s condition. Cracks and settling don’t necessarily indicate past water damage, but water stains and visible gaps in your basement walls could indicate past flooding.
If there are any waterproofing systems available, including sump pumps or basement sealant, you’ll want to inspect that they are working properly so that if it does flood, you will be able to deal with the fallout.
Additional areas to note in the inspection report will include electrical panels and any appliances located in basements, to inspect whether there is any damage.
How to Floodproof Your Home
While purchasing a home in a flood zone can be a little nerve-racking, there are many ways to protect your home from flooding or moisture intrusion.
- Invest in flood insurance: Even if not required, flood coverage gives peace of mind and financial protection. Keep in mind that flood insurance only covers damage from natural weather events and not any moisture intrusion, such as burst pipes.
- Elevate utilities and belongings: Moving HVAC units, water heaters, and valuable items above potential flood levels reduces damage risk. Even just elevating these appliances a few inches can make a world of difference.
- Improve drainage: Consider installing sump pumps, French drains, or regrading the yard to direct water away from the home. This will help your home avoid water intrusion during snowmelt as well.
- Seal basements and foundations: Waterproofing treatments can reduce seepage during heavy rains.
These measures not only help protect your property but can also lower your flood insurance premiums.
Balancing Risks and Rewards
Buying a house in a flood-prone area doesn’t have to be a deal-breaker. Many homeowners live safely and happily in such zones with proper precautions. The key is to understand the risks, budget for insurance, and make informed decisions about protecting your property.
By researching the flood history, reviewing FEMA maps, consulting with insurance agents, and getting a detailed inspection, you’ll be in a strong position to weigh the pros and cons of the home.
FAQs
How do I know if I need flood insurance?
Flood insurance is mandatory if the home is in a FEMA-designated high-risk zone and you have a federally backed mortgage. Even outside high-risk zones, many homeowners choose to purchase it for peace of mind.
How much does flood insurance cost?
Premiums vary based on your location, the home’s elevation, and its flood history. Costs can range from a few hundred dollars to several thousand per year. Getting a quote before purchase helps you plan your budget.
Can I get a mortgage for a house in a flood zone?
Yes. Lenders will approve mortgages in flood-prone areas, but they may require proof of flood insurance coverage before closing.