This week we want to discuss briefly the issue of flood
insurance and its importance in the selling process. With so many rivers,
streams and creeks in this area, many properties are considered to be in flood
zones. It is critical to know if your property is such a property because
it impacts the premium cost of flood insurance for a potential buyer. Please
don't stop reading because you think this is not an issue for you.
In 2010 the Federal Emergency Management Agency
(FEMA) did redistricting in the Durango/Bayfield area and
as a result many properties that previously were not categorized as being in
"high risk" flood zones now are so designated. Everyone
lives in a flood zone–it's just a question of whether you live in a low,
moderate, or high risk area.
All Sellers should check with a knowledgeable insurance agent
regarding the issue of flood insurance. Even if you have never had to
purchase flood insurance before, it is important, we believe, to know whether
your home is in a low, moderate or high risk flood area per the new FEMA zone
maps. We have had instances in the last couple of years where a buyer of
a property found out through the loan process that their lender would be
requiring flood insurance on a property that had not had a requirement for such
insurance in the past or where the premium cost was going to go up for the new
owner by thousands of dollars over what the current owner was paying. The
new premium cost of high risk flood insurance policy can be as high as over
$4000.00 per year. Obviously, this can be a deal killer for some
buyers.
If you go to the link below you can enter your property
address and in most instances determine if your property is in a high risk
flood area. If it is, this is a disclosure issue for a potential
Buyer who will most likely have to obtain flood insurance as a part of their
loan process. The sooner this issue is identified the better with respect
to making it to a successful closing. With the help of a knowledgeable
insurance professional there may be options to help keep the annual flood
insurance premium at a more affordable rate.
Please call us if you have any questions.
No comments:
Post a Comment