Should You Buy a Home in a Flood Zone?

By Bryan David

Bryan David is one of the best REALTORS® serving Ocean Springs, Biloxi, Gulfport and the entire coast. He is a Biloxi native, military veteran and retiree, and a multi-year top-producing agent with hundreds of satisfied clients.

Are you considering buying a home in a flood zone? Think twice. While these homes may seem like a great deal, they come with serious risks. Before you sign anything, you need to know the hidden costs, insurance challenges, and flood dangers that could impact your investment.

Hurricane Katrina showed us how devastating floods can be. Homes that had never flooded before were suddenly 10-15 feet underwater. People had to climb onto their roofs to survive. Some didn’t make it. If you’re buying in a flood zone, you must understand the risks.

The first thing you need to know is the flood zone classification. There are different flood zones, and each comes with its own risks. Zone V is the most dangerous, found near coasts and rivers, where storm surges can cause extreme damage. Zone A is still high-risk but doesn’t experience strong waves, though rising water levels remain a major threat.

Next, you must check the home’s elevation. A home’s elevation affects both flood risk and insurance costs. The Base Flood Elevation (BFE) tells you the safe height for a home. If a home sits below the BFE, expect sky-high insurance premiums and a greater chance of flooding.

The Federal Emergency Management Agency (FEMA) updates its flood maps, and many homes built before 2010 don’t meet current standards. If a house was built to outdated flood elevation requirements, it may no longer be at a safe height. This means a higher chance of flood damage and rising insurance costs that could make the home difficult to sell later.

Speaking of insurance, it’s important to know that FEMA’s National Flood Insurance Program (NFIP) only covers up to $250,000. That’s often not enough to rebuild after a severe flood. While some homes have grandfathered insurance rates, those rates will increase up to 18% per year until they reach market value. This means your “affordable” flood insurance policy could soon become very expensive.

If you buy a home that sits too low, you will pay thousands more in insurance and face a higher flood risk. Some homes with repeated flood claims can’t even get insurance, making them nearly impossible to sell.

Buying in a flood zone doesn’t have to mean disaster, but you must be informed. An experienced real estate agent will help you check flood risks, find a home’s elevation, review FEMA maps, and understand insurance costs before you make a decision.

Before you buy, let’s make sure you’re making the right move. Call 228-215-1861 or email bhgre@expectrealty.com today.