{"id":17970,"date":"2020-07-16T10:04:32","date_gmt":"2020-07-16T17:04:32","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=17970"},"modified":"2026-04-14T02:22:16","modified_gmt":"2026-04-14T09:22:16","slug":"tips-for-selling-a-house-in-a-flood-prone-area","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/tips-for-selling-a-house-in-a-flood-prone-area\/","title":{"rendered":"10 Tips for Selling Your House in a Flood-Prone Area As Risks Rise"},"content":{"rendered":"

Experts suggest that more and more homeowners will find themselves in an area considered \u201cflood prone\u201d \u2014 in fact, projected flood plains are anticipated to grow by up to 45% by the end of the century<\/a>.<\/p>\n

If this is you now, and you\u2019re looking to put your property on the market, follow these tips for selling a house in a flood-prone area. We\u2019ll help you navigate the ins and outs of flood insurance, invest in any advisable floodproofing improvements, and make your house as marketable as possible to the right buyer who\u2019s willing to accept the risks.<\/p>\n

What does it mean to live in a \u201cflood-prone\u201d area?<\/h2>\n

First, let\u2019s get the terminology straight because there\u2019s a lot of different vocab to understand when it comes to real estate and flooding. A \u201cflood prone\u201d area \u2014\u00a0also known as a floodplain<\/a> \u2014\u00a0refers to \u201cany land area susceptible to being inundated by water from any source during a 100-year flood as defined by FEMA (Federal Emergency Management Agency) or FHAD (Flood Hazard Area Delineation),\u201d according to a local government office.<\/p>\n

If you own a house in a moderate flood zone (between the 100-year and 500-year flood levels) or a low risk flood zone (above the 500-year flood level) you\u2019re not technically \u201cflood prone\u201d per current guidelines \u2014 but you can still benefit from the guidance here.<\/p>\n

The biggest difference is that mandatory flood insurance requirements don\u2019t typically apply to moderate and low risk zones \u2014 though obtaining insurance is still often advisable<\/a>, according to FEMA. Even if you have checked your zone previously, it\u2019s advisable to check again as FEMA re-surveys areas from time to time and your zone may have changed, which brings us to our first piece of advice.<\/p>\n

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(Source: Vidar Nordli-Mathisen \/ Unsplash)<\/figcaption><\/figure>\n

Tip #1: Verify your flood zone tier and insurance requirements<\/h3>\n

According to FEMA, 13 million homeowners live in the high risk 100-year flood plain<\/a>, which means they face a 1% chance of flooding during any given year and a 26% chance of flooding over the life of a 30-year mortgage. You\u2019ll know if you\u2019re technically in a \u201cflood prone\u201d area if your community falls into any FEMA-designated flood zone starting with letters \u201cA\u201d (High Risk Areas) or \u201cV\u201d (High-Risk Coastal Areas) where those mandatory flood insurance purchase requirements come into play<\/a>.<\/p>\n

Outside of the 100-year floodplain, Zone B and shaded Zone X designate areas at moderate risk for flooding. If you\u2019re in a Zone C or unshaded Zone X, your home is at minimal risk for flooding. You can check your zone using FEMA\u2019s Flood Map Service Center<\/a>. To find out if your community participates in the National Flood Insurance Program (NFIP), go to FEMA\u2019s National Flood Insurance Program Community Status Book<\/a> or talk to your insurance agent.<\/p>\n

Tip #2: Have your property surveyed for an elevation certificate<\/h3>\n

If your property is in a flood-prone area but you don’t believe you belong there, you can have a surveyor provide an elevation certificate that you can submit to FEMA to be removed from that flood zone. In fact, FEMA advises<\/a> that \u201cit may surprise you to learn that some policyholders with grandfathered policies could be paying less for their flood insurance today if they had specific elevation information for their building.\u201d<\/p>\n

An elevation certificate<\/a> is a document that lists a building’s location, lowest point of elevation, flood zone, and other characteristics. If your property is considered to have a high risk of flooding, you’ll likely need to obtain FEMA’s elevation certificate for your property before you can buy flood insurance.<\/p>\n

If you obtain proof that you\u2019re in the wrong zone, you can go online and submit<\/a> a Letter of Map Change (LOMC) request. In addition, the eLOMA site<\/a> allows licensed land surveyors and professional engineers to submit Letter of Map Amendment for you.<\/p>\n

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(Source: LinkedIn Sales Navigator \/ Unsplash)<\/figcaption><\/figure>\n

Tip #3: Make any necessary flood disclosures<\/h3>\n

Liz McCarthy<\/a>, a top agent in San Rafael, CA<\/a> (an area with a long history of flooding<\/a>) always prepares a flood disclosure packet on behalf of her flood-prone seller clients.<\/p>\n

She includes all pertinent information concerning the property, the designated flood zone, information about insurance, and more to make sure everyone is on the same page. California has a special form called the natural hazard disclosure report<\/a> (NHD) that sellers use to make disclosures about flooding and other nature-related risks such as earthquakes.<\/p>\n

But some states are a lot more lax, putting the onus on you to be transparent about flooding information out of good faith. 29 states have flood disclosure mandates of varying degrees, but 21 states require no flood disclosure requirements at all, the Natural Resource Defense Council (NRDC) reports. Check out the NRDC\u2019s Flood Disclosure Map<\/a> to see the regulations relevant for your state.
\n<\/b>
\n<\/b>However, regardless of your individual state\u2019s laws, the general rule real estate experts go by is this: you should never hide material facts that could impact your home\u2019s value or safety, including its history of flooding, flood zone status, or insurance requirements<\/a>.<\/p>\n

What\u2019s more, if you\u2019ve received federal disaster assistance on your home, you will be required to obtain flood insurance at that address. From there, federal law does require that when you sell your home<\/a>, the new owners be informed that they\u2019ll need to continue insurance coverage on the property, according to FEMA. If you have any questions about what you\u2019re legally required to disclose, talk to your agent and, if necessary, a skilled real estate attorney.<\/p>\n

Tip #4: Request a CLUE report<\/h3>\n

While it\u2019s a smart idea to be transparent about your flood zone and any history of flooding, on the other side of the coin, you want to put buyers minds\u2019 at ease using cold hard facts. If you have never had to pay a claim for flooding \u2014 or the area has not flooded for many years \u2014 that works to your advantage. And you can request a claims-information report generated by LexisNexis, a consumer-reporting agency, to show buyers your property\u2019s lack of flood events with clear documentation.<\/p>\n

You can obtain this report, called a Comprehensive Loss Underwriting Exchange (CLUE)<\/a> through the link or by calling 866-312-8076. The report contains up to 7 years of personal claims history. The Fair Credit Reporting Act Entitles you to a free copy<\/a>. This will let you show potential buyers that no claims have been filed, and\u00a0 the risk of flooding is low.<\/p>\n

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(Source: Charles Deluvio \/ Unsplash)<\/figcaption><\/figure>\n

Tip #5: Offer to transfer your flood insurance to the buyer if possible<\/h3>\n

If you don\u2019t have flood insurance because it\u2019s not required, you still may want to consider getting it before you put your house on the market.<\/p>\n

According to FEMA<\/a>, \u201ceven if you live outside a high-risk flood zone, called a Special Flood Hazard Area, it’s a wise decision to buy flood insurance. In fact, statistics show that people who live outside the high-risk areas file more than 25% of flood claims nationwide.\u201d<\/p>\n

This will help protect your home should a flood occur while it\u2019s on the market. In addition, some policies allow sellers to transfer an existing policy<\/a> to a new buyer with no lapse in coverage \u2014 so this can be a nice selling point for your home. Already having a policy in place may be beneficial to the buyer because, according to FEMA \u201cif the rate is subsidized, the rate can be transferred<\/a>.\u201d<\/p>\n

Tip #6: Private vs. public insurance: Make sure you\u2019ve got the best policy for your property<\/h3>\n

While most flood insurance is federally regulated through the NFIP, you can also buy private flood insurance on the market. As of 2018, private flood insurance makes up about 15% of flood insurance policies<\/a> nationwide, according to a report from Insurance Journal<\/i>.<\/p>\n

If you live in a lower risk flood zone, you might find private offerings to be more affordable. The drawback of private insurance is if your area becomes higher risk over time, your provider can choose to not renew your policy<\/a>, which could result in higher rates.<\/p>\n

You\u2019re going to find that public health insurance policies generally offer lower rates for high-risk areas<\/a>. Do some research on the FEMA National Flood Insurance Program (NFIP) website FloodSmart<\/a> if you\u2019re looking for a public flood insurance provider.<\/p>\n

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(Source: Mackenzie Marco \/ Unsplash)<\/figcaption><\/figure>\n

Tip #7: Collect details around your property\u2019s flood insurance pricing<\/h3>\n

If you\u2019ve been paying flood insurance, one way to reassure buyers about the additional cost is to share with them what you pay. Collect your past flood insurance bills so you can show them the premiums and rate increases over time. Check to see if your insurance is transferable by calling your carrier to inquire.<\/p>\n

Tip #8: Offer to pay for flood insurance as a buyer incentive<\/h3>\n

Paying for one year of insurance can bring a lot of peace of mind and could entice a qualified buyer who\u2019s otherwise feeling leery to make an offer. Another option is to adjust the selling price to account for the insurance premium costs for that first year.<\/p>\n

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(Source: Brendan Steeves \/ Unsplash)<\/figcaption><\/figure>\n

Tip #9: Emphasize the reward for the risk<\/h3>\n

An increased flood risk<\/a> often goes hand in hand with something buyers love: water views, close proximity to the water, and perhaps even private access to the water. In fact, counties directly on the shoreline account for less than 10% of total U.S. land area, but 39% of the total population<\/a>, according to the National Ocean Service. Despite the risks, people love the coast and being near any kind of beautiful or usable bodies of water. If your property offers exclusive activities like fishing, swimming, or boating, make sure that you market these perks. Be sure to highlight any waterfront views with professional photos in your online listing.<\/p>\n

Tip #10: Take reasonable flood-proofing measures<\/h3>\n

According to a report from CityLab, your best line of defense against water intrusion when you live in a flood-prone area is elevation. However, raising a house that\u2019s already been built will cost you between $180,000-$250,000<\/a>, not exactly a feasible expense for everyday homeowners.<\/p>\n

Other floodproofing strategies are more for when you know a flood is coming, like installing watertight shields over your windows and doors. But there are some reasonable and more permanent flood proofing measures you can take before you sell your home, which buyers may find value in. The NRDC offers a few smart suggestions<\/a>:<\/p>\n