Going without homeowners insurance is not a smart move if you own a home, but you also have to make sure that there are no holes in your homeowners insurance plan.
Be informed. Stay informed about the risk of flooding. Check with your local Red Cross, planning department, zoning department or emergency management office to find out the risk of flooding in your area. The higher the risk, the more important it is to be prepared to take action.
An over-supply of lender-owned homes in the neighborhood may be the one factor that is depressing prices only for the short-term. Their presence will devalue a home, but only until they're sold. So buyers who are in it for the long haul might do well to consider buying in a location such as that - provided that other factors make the home a good choice.
People who buy homes in areas that have full-time fire service attract cheaper premium than folks who stay in places with only a volunteer fire service. Be informed that your premiums will be further influenced by your home's distance from a fire station, firefighting equipment or hydrant. People who reside nearest to firefighters or fire fighting facilities pay more affordable rates everything else being equal.
On a more personal level, buyers need to think about location in terms of their own lives. Saving several thousand dollars on the purchase price of a home is small comfort if they have to drive an additional 60 minutes to work each day.
About two months after purchasing a house and fixing it up, (it was still on the market) the State decided to put my house in a flood zone! The only body of water was a little creek that ran through a golf course half a mile away! What can you do! The Flood Insurance costs $800 a year! Try selling that to a prospective buyer.
The first thing you should do is to check with your state agency. There are some states that have requirements when it comes to buying one. They can offer you cheaper policies if you live in an area that has a bigger chance of flooding.
Many private insurance companies offer flood policies written through the NFIP. I suggest dealing with an agent that is experienced with the program. This type of policy can be purchased on the phone in a few minutes. Ask your agent about any questions you may have about the program. You can get more information at my Texas flood insurance site or you can call my Houston office at 281-537-2700.