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Dream Home Blues: Save Your Family from Drowning in a Flood of Debt

So, you have found your ideal home. It’s within your price range, and it’s the right size for your family. It has a beautiful yard where your kids can play, and it looks excellent. There’s just one problem. It’s within a flood zone.

Should you go ahead and buy your dream house or should you just forget about it and look somewhere else?

Should You Buy the House?

Your initial reaction might be to walk away from the deal. Who wants a house that can be flooded anyway? You don’t want to end up spending too much for water damage repair in a city like Denver or wherever the house is located.

But don’t close the door yet. There is still a chance that you can buy that dream house of yours. Here are a few things that you need to consider if you are thinking about buying a house in a flood zone.

1. The Flood ZoneWhere It’s Located

The term flood zone can be alarming, but it does not automatically mean that a house is going to be submerged underwater when heavy rain pours in. You might be surprised to know that many areas are classified as flood zones, even if there is minimal risk.

If you are looking on a FEMA Map, zones that are classified as zones X or C are places with minimal risk. Watch out for the areas marked as A or V as those are the most prone.

2. When the House Was Built

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Older homes might be more vulnerable to flooding. Not only that, but the house might also be charged a higher insurance premium since insurance companies use maps that mark flood zones and the age of the house in deciding the price of the premium.

3. Flood Insurance Cost

If you’re interested in buying a house in a flood zone, then you should look into the cost of flood insurance. The higher the risk of the home, the more expensive the premium will be. You need to factor that into the overall cost of the purchase.

When you add the cost of the flood insurance, then you can decide if it’s worth it or not.

4. Flood Risk Changes

Keep in mind too that flood risk can change over time. The reasons why an area can get flooded can vary, so it’s crucial that you know whether the tendency is for it to get worse or better. Most of the time, the risk will only increase.

These are just four of the things that you should consider when you are thinking about buying a house in a flood zone. As you can see, they are quite easy to check.

Don’t rule out a house just because it’s in a flood zone. There are a lot of things that you should consider. Just be sure to do your research before you make your decision, so you do not end up regretting your choice. It is your responsibility to conduct thorough research about the property that you are considering to buy.

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