Flood Insurance: What Your Should KnowSeptember 13, 2018
Are you aware of the importance of flood insurance?
1. Learn the history of the property.
Is the home built at the bottom of a hill? Has the basement been prone to flooding in the past? Is the home located in a known flood zone? – This is all information that you should figure out before. It is something that clients need to know about, whether it will deter their decision to purchase that home or not. The history of the home plays a large role in the type of flood insurance a buyer may need.
2. Make sure insurance prices are disclosed.
This is something to talk about before they decide to close on the home. It is crucial to know how much extra money they will have to invest in a home before buy it – and flood insurance is a big part of that. Make sure you know numbers before going through with the buying transaction.
3. Renting has its risks!
If your are purchasing a home that they are planning to rent out, or one that will have long-term vacancies, the flood insurance could possibly be much more expensive. If the land itself is vacant, flood insurance isn’t necessary, but any home that won’t have full-time residency of can cost them greatly when it comes to flood insurance – so much so that they may want to rethink their decision if the property is in a high-risk flood zone.