{"id":22367,"date":"2021-02-26T09:57:06","date_gmt":"2021-02-26T17:57:06","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=22367"},"modified":"2026-04-14T02:24:58","modified_gmt":"2026-04-14T09:24:58","slug":"buyer-what-happens-to-a-home-sale-in-a-flood","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-what-happens-to-a-home-sale-in-a-flood\/","title":{"rendered":"What Should You Do If the Home You\u2019re Buying Is in a Flood? Your Options As a Buyer"},"content":{"rendered":"

After months of planning, saving, and house-hunting<\/a>, you have your dream home under contract<\/a>. You\u2019re busy packing your belongings and preparing for closing when you get news that turns your dream purchase into a homebuyer\u2019s nightmare. The storm that passed through the area has caused a flood at the house you\u2019re planning to buy. And now you have the unfortunate task of figuring out what happens to a home sale in a flood.<\/p>\n

As a homebuyer, you\u2019ve probably never worried about a natural disaster disrupting a deal. But if you live in a region that\u2019s prone to floods \u2014 be it coastal states where hurricanes are a problem or a neighborhood with a river that can overflow its banks \u2014 then it\u2019s best to be prepared for such a situation.<\/p>\n

We\u2019ve consulted an agent in a flood-prone region, checked contract language, and put together a list of steps you should take to decide whether to go through with the deal.<\/p>\n

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Source: (Nathaniel Shuman \/ Burst)<\/figcaption><\/figure>\n

Research local flooding<\/h2>\n

Before you even start looking for a house, find out what areas near you are most prone to floods. The Federal Emergency Management Agency, or FEMA, has an online tool<\/a> that lets you see where the flood zones are in any location you select.<\/p>\n

Before making an offer on a house, it\u2019s essential to determine the home\u2019s flood zone<\/a>. In addition to checking the FEMA map, read the seller\u2019s disclosure<\/a>. Not every state requires seller\u2019s disclosures, and those that do don\u2019t always ask sellers to reveal flooding status, but there may be other clues.<\/p>\n

In Texas, for example, the seller must disclose whether they carry flood insurance. \u201cAs a buyer\u2019s agent, that\u2019s a red flag,\u201d says April Mason<\/a>, a real estate agent in Corpus, Christi<\/a>, Texas, who sells homes 40% faster than the average agent in her market.<\/p>\n

If the seller has flood insurance, ask if there have been previous flooding incidents, she advises, noting that it\u2019s possible the seller is just cautious and wants the extra protection. Basic homeowners insurance usually doesn\u2019t cover floods \u2014 and a flood is categorized as excess water spreading across two or more acres of land, or two or more properties, where the land is normally dry. If your sewer backs up because of flooding, and you don\u2019t have flood insurance, then you could be out of luck.<\/p>\n

For additional due diligence, contact an insurance agent, provide the address, and ask them if the home requires flood insurance. The agent can tell you what kind of flood zone<\/a> the house is located in, which indicates the severity of the flooding risk. Also, ask the insurance agent for a CLUE report<\/a> on the home, which will reveal any insurance claims filed on the house in the past.<\/p>\n

\u201cThe buyer needs to have as much information about the house as possible,\u201d Mason says.<\/p>\n

\u201cI try to do as much research as possible about the property on the front end.\u201d<\/p><\/blockquote>\n

Still, if the house floods after you\u2019re under contract on it, what should you do?<\/p>\n

Secure the house<\/h2>\n

It\u2019s not your house yet, so you can\u2019t physically do anything about the water entering the home. That\u2019s the seller\u2019s responsibility. (More on that later.)<\/p>\n

However, you can certainly encourage the seller to do everything possible to minimize the damage. Ask your agent to call the listing agent and ensure the seller is taking the necessary steps.<\/p>\n

Water can damage<\/a> many components of a home, including flooring, wallboard, wooden studs and beams, and electrical components and appliances. Floodwater can also carry contaminants, and water in the house can encourage the growth of mold. The longer any moisture stays in the home, the more extensive the damage will likely be. A powerful flood could even damage the home\u2019s foundation.<\/p>\n

If the flooding results from a broken pipe or damaged roof, the first step is to stop more water<\/a> from coming in by shutting off the water or covering the roof. If it\u2019s caused by an overflowing stream, you may have to wait until the water recedes.<\/p>\n

After that, the owners need to get the moisture out of the house, pumping standing water out if necessary, and using fans or blowers to help dry surfaces. They should remove any waterlogged personal items and clean everything that remains in the house with a strong cleaner to limit mold growth.<\/p>\n

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Source: (HalGatewood.com \/ Unsplash)<\/figcaption><\/figure>\n

Assess and document the damage<\/h2>\n

For a home sale in a flood, the sales contract will likely outline the buyer and seller\u2019s obligations, and that may vary based on how much damage the flood has caused.<\/p>\n

For example, the standard purchase agreement in Tennessee<\/a> says that if the damage is more than 10% of the closing price, the buyer or seller has the right to terminate the contract. Other states may cap the maximum damage at a lower amount, or the contract might simply state that the seller bears the risk of any casualty loss until closing<\/a>.<\/p>\n

To get an unbiased evaluation of how severe the damage is, request an additional home inspection<\/a> if yours has already concluded. You may have to pay another fee for the additional exam, but it could be money well spent. An inspection can help you understand:<\/p>\n