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Is Your VA Home in a Flood Zone?

Posted on January 21 By MLP Lending Guide

If you are I the market for a new home have you considered the potential for possible future flood damage to the property? For those veterans using the VA Home Loan Guarantee Program, it is required by the VA for the buyer to pay the fee for a determination of flood risk on the property they are planning to purchase.

FEMA has a National Flood Insurance Program so that if the home you purchase is determined to be in a flood area, you can get insurance to protect you. They warn that flood insurance is not usually covered by homeowners insurance. Most people would think that home owners insurance covers all natural disasters, but flood are not covered even though they are the leading natural disaster in the U.S.

Some more facts that you should know about flood hazards before you purchase a home are:

According to FEMA, close to 25% of all the claims made in their flood insurance program are from areas that were considered a minimal flood risk. This is why it may be important to have flood insurance even if your risk of flooding is low.

The FEMA flood insurance program has a 30 day grace period before insurance coverage goes into effect, so make sure and get coverage before you need it.

According to FEMA, everyone lives in a flood zone. Water levels can rise and flood anywhere, it is just a questions of the risk of it happening to your property.

The amount of risk is what is determined when looking at if you are in a flood zone or not. If you are considered to be in an official flood zone where your risk is high, then you will be required by your lender and the VA to carry flood insurance which is an added expense to you and your family.

The VA requires a third party representative who is not personally invested in the property or parties involved to do the flood zone determination.

For more information on the FEMA flood insurance program, and to see how high risk your property is for flood damage go to FloodSmart.gov.

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