Buying a House in a Flood Zone: What You Need to Know

Key takeaways: 

• Buying a house in a flood zone comes with financial and safety risks, including high insurance costs, property damage, and potential resale challenges. 
• Flood insurance is essential – and often required – if the home is in a high-risk area. 
• There can be advantages like lower purchase prices and waterfront locations, but they should be weighed carefully against the risks. 
• Do your research early. Check flood maps, review the property’s flood history, and ask the right questions before making an offer. 

Buying a house in a flood zone can come with serious risks. From higher insurance costs to potential damage and resale challenges, there are a lot of factors to weigh. But if your dream house on the lake happens to be in a flood zone, it doesn’t have to be a deal breaker. 

In this Redfin article, we’ll go over what flood zones are, the pros and cons of buying in one, and what to consider before making an offer. Whether you’re buying a home, renting a house, or living in an apartment, understanding how flood zones affect properties can help you make a smarter, safer choice. 

What is a flood zone? 

A flood zone is a geographic area identified by the Federal Emergency Management Agency (FEMA) with a specific level of risk for flooding. The FEMA flood zones range from high-risk to low-risk. They are assigned based on factors like weather patterns, elevation, and historical flood data. 

Special Flood Hazard Areas (SFHAs) are the highest risk zones, and have over a 1% chance of flooding annually. While 1% may not seem like a high percentage, this adds up to a one in four chance of flooding over the course of a 30-year mortgage. 

How can you check if a house is in a flood zone? 

The easiest way to find out if you’re buying a house in a flood zone is by checking the address on FEMA’s Flood Map Service Center. Flood zone details may also appear in the seller’s disclosure, but this isn’t a requirement for every state. 

It’s important to do your own due diligence to understand your risk. Even homes outside a SFHA can still be at risk for flooding. Consult multiple sources, like county records, elevation maps, and a home’s claim history for the most accurate picture and updated flood information. 

Pro tip: When you’re looking at Redfin’s real estate listings, you can view climate risks, flood zones, and more in the property details. 

Start research early in the home buying process to make sure you start your search in areas that match your comfort level with risk. 

>>Read more: Is My House In A Flood Zone? 

6 risks to consider when buying a house in a flood zone 

The risks of buying a home in a flood zone should not be considered lightly. Be sure to carefully review some of the highest risks listed below before proceeding. 

1. Expensive flood insurance: Depending on the level of risk, flood insurance can be extremely costly, especially in coastal states, homes at lower elevations, and regions prone to hurricanes. Make sure to factor this into your home affordability calculations.
2. Different types of flooding: A river swell and a hurricane are very different events, but both can end up flooding your home and causing serious damage. Knowing what to expect will help you prepare your home and yourself for a major event. 
3. Extensive damage: Even an inch of water can cost thousands of dollars in repairs. Flooring, drywall, and electrical systems may all need replacing in the event of a flood, not to mention furniture and personal items. 
4. Difficult to resell: Flood risks can lower a home’s value due to associated risks and insurance costs, and buying in a flood zone might be a tricky investment to sell later on. 
5. Evacuation and safety concerns: Severe flooding can force you to evacuate, so having an emergency plan is essential when living in a flood-prone area.
6. Emotional distress: With the added risks comes additional stress. Flooding can take a toll on your mental health—causing stress, anxiety, and emotional strain, especially if you experience a major loss.

>>Read more: What to Do After a Flood: 10 Essential Steps for Homeowners

Are there any advantages to buying a house in a flood zone? 

Despite the risks, there can be some good reasons to buy a house in a flood zone, including: 

• Lower purchase prices: Even though this is considered a risk for resale, you can take advantage of the lower prices as a buyer. You may be able to afford buying a home in a flood zone that would be out of your budget otherwise. 
• Less competition: There may be fewer buyers interested in homes in flood zones, so you won’t have as much to worry about when it comes to bids. 
• Waterfront property: If you’re someone who dreams of sunny beachfront properties or enjoying your morning coffee with a view of a lake, you’re probably more willing to accept the potential flood risks and invest in the insurance costs. 

Can you still get a mortgage on a house in a flood zone? 

Yes, getting a mortgage on a house in a flood zone is very similar to getting a mortgage anywhere else. However, if the house is in a SFHA, your lender will likely require you to purchase flood insurance before approving the loan. 

Some government loans also have specific requirements for high-risk properties. Be sure to review these carefully before beginning your home search. 

Do you need flood insurance? 

If you’re buying a home in a flood zone, you absolutely need flood insurance. Even if your lender doesn’t require it, traditional homeowners insurance does not cover flooding. You’ll want to check with your provider or look into other options, like the National Flood Insurance Program (NFIP), to get a quote. Knowing what you’ll pay for monthly insurance before making an offer will help you budget your mortgage costs. 

>> Read more: What Does Flood Insurance Cover? 

Important questions to ask before buying 

While you might have some answers from the seller’s disclosure or your real estate agent, make sure to ask and answer some of these important questions to best prepare yourself for buying a house in a flood zone:

• What is the classification of the flood zone in this area? 
• Has the property flooded before? 
• What is the claim history of the property? 
• How often does the property flood? 
• What is the estimated cost for flood insurance in this area?
• What has the community or government done to protect the area and mitigate floods? 
• What has been done to the property to mitigate floods? 

Buying in a flood zone is a personal decision

There is no one answer when considering whether or not you should buy a house in a flood zone. The risks, costs, and stress are real, but  it’s not always a deal breaker. With proper precautions, flood protection, and often lower prices, it could still be the right move, especially if living near the water is your dream. Ultimately, the decision depends on what’s best for you.

FAQs about buying a home in a flood zone 

Should I buy a house in a flood zone? 

Whether or not you should buy a house in a flood zone is a personal decision on whether the risks outweigh the benefits. Carefully reviewing the zone’s classifications and understanding the preventative measures required or already in place is essential. And if the added cost of flood insurance pushes you outside of your ideal budget, it might be time to move on.

Can the flood zone be changed? 

Yes, the flood zone can be changed. FEMA regularly reviews flood maps and data, and climate change has made more changes necessary over the years. Just because a house isn’t currently in a high risk area doesn’t mean it won’t change. You can also request to change your flood zone if you believe your house was incorrectly zoned in a SFHA. 

Will homeowners insurance cover a flood? 

No, standard home insurance does not cover floods of any kind. You will need a separate policy for flood insurance. Look into whether your area can be covered by the federally funded NFIP. Private insurance companies also offer options for coverage. 

How do I find out if a home has flooded before? 

Since not every state requires that a seller’s disclosure includes floods, it’s important to do some of your own research. Search local government records or past insurance claims, check for signs of water damage, or talk to neighbors to get a personal perspective on neighborhood flood risks.

How do I protect the house from floods? 

Flood insurance is the number one way to assure your home—and your wallet—are protected in the event of a flood. Learning more ways to protect your home from floods to prevent or minimize damage can also save you stress and cost you less in the long run.