Flood Insurance: The Next Shock!
FLOOD INSURANCE is going to be the "hot topic" in real estate for the next few months in all the coastal areas of the U.S. Flood insurance rates may increase substantially as FEMA stops subsidizing them, which may cause major problems to real estate transactions.
What can coastal property sellers and buyers do proactively to avoid price shocks and frustrated transactions?
- Get a Flood Elevation Certificate
- Obtain a Flood Determination and a flood insurance quote from an educated flood insurance agent, and retain a flood insurance consultant if there are any errors in the flood zone classification.
- Increasing insurance deductibles may lower flood insurance premiums
- Raise finished space above min. required elevation (hard to do on existing homes)
- Elevate mechanical systems (including HVAC and others) to minimize flood damage
- Clear lower levels: Check flood insurance issues such as storage areas, basements, lattice, finished walls, breakaway walls, openings.
- Include an "insurance research" contingency in any offer you make, or use the new "due diligence" clause.
- Ask the seller to provide an Elevation Certificate or recent flood insurance quote upfront, before you make an offer.
- Work with a knowledgeable Realtor and flood insurance agent to get realistic flood insurance price expectations.
To Buy or Sell a Home in the Charleston, SC area call The Alan Donald Real Estate Team at 843-900-0155.