If you are thinking about purchasing a home in a flood zone, there are a lot of things that you have to consider. It is definitely risky to purchase a home that is located in a flood zone, but you may find that it's worth it because you like the home and location or because you're able to get a great deal on the property. If you do choose to purchase a home in a flood zone, you should probably get a flood elevation certificate for these reasons.
Your Lender Might Require It
When buying a property in a flood zone, you might find that there are a few extra hoops that you have to jump through to secure financing. For example, you might be required to have a flood elevation certificate that you can turn over to your lender. If you're unsure, you can ask the banker who is helping you with your mortgage about whether or not this is required.
You Might Need it to Purchase Flood Insurance
It is a good idea for any homeowner to purchase flood insurance since you never know what might happen. However, if you live in an area where flooding is more common, then it's actually very important for you to purchase flood insurance. If you have a federally regulated or insured mortgage, then you will be required to purchase flood insurance. Plus, you and your family are at a significant risk of losing everything in a flood if you don't have flood insurance.
Depending on the insurance company that you purchase your flood insurance from, you might be required to have a flood elevation certificate. This is because many companies use these certificates to calculate rates for flood insurance. You can streamline the process of buying the flood insurance that you and your family need by having this certificate.
You May Need it When Selling the Property
If you choose to sell the property later on, you might find that it will be a bit difficult to do so. After all, it can sometimes be harder to sell a property that is located in a flood zone. However, you can make it a little bit easier to find a potential buyer by already having a flood elevation certificate on file, so this is yet another reason why you'll probably want to get one of these certificates if you are buying or if you already own a property in a flood zone.