The 411 on Flood Insurance in Quincy Massachusetts
Flood insurance comes up a lot with our clients on the South Shore. We wanted to give you some basic tips and info to help you feel more educated the next time you come across a home in the flood zone.
If your house is located in the Special Flood Hazard Area (SFHA), the Quincy coastal communities that are vulnerable for floods during the 100-year rainfall, or the 500-year floodplain that is vulnerable to severe sea storms, you will be required to have flood insurance. While certain communities require homeowners to obtain flood insurance, there are some coastal communities where it is not required but highly recommended.
Many homeowners across Houghs Neck MA, Merrymount and other coastal communities across Quincy purchase flood insurance because it is mandated by the banks upon obtaining a mortgage or a home renovation loan. It is important to note that most flood insurance policies only cover the structure of the house, and homeowners need a separate policy to insure their belongings.
Effects of Flood Insurance on Selling Price
Selling a home in a high-risk flood zone or with a flood insurance can be a challenging initiative, but in neighborhoods across Quincy, particularly waterfront homes, buyers are aware that they will have to purchase a flood insurance.
Flood insurance is often more expensive than other home insurance policies, and while the flood infrastructure across Quincy is improving, home owners are still reliant on their policies despite the added financial burden. Buying a property with an expensive flood insurance, along with all the other costs involved in buying a house, often make the prospects challenging for the buyer.
Sellers need to fully understand the challenges of selling of flood zone houses in order to make progress and seal the deal at closing. Sellers will have to provide the buyers with a full disclosure, and adding the flood insurance will add thousands of dollars’ worth of yearly costs to the final listing price of the house. Sellers can also conduct a survey of the land and provide the buyers with documented evidence of the base flood elevation of the property.
The listing price of your house must include the additional expenses of the mandated flood insurance, and in a way, this also allows the seller to gain a competitive advantage over others houses situated across the flood zone.
Importance of Flood Insurance for Waterfront Homes
Waterfront houses amongst other residential buildings, are one of the prime attractions of real estate across Houghs Neck MA, Merrymount and many other coastal communities sprawled across Quincy. It should go without saying, but purchasing a waterfront property requires additional insurance and safeguards, especially if you are in a high-flood risk zone, or even a zone that is vulnerable to high-tide storms.
Waterfront properties are at a greater risk for flooding and excess sea water, which can cause damages to the structure and belongings. Buyers must be prepared to carry the financial burden of monthly flood insurance payment, and often, this can make the buying process extremely overwhelming and unattainable for most buyers.
Recently, the Federal Emergency Management Agency, which is responsible for the federal flood insurance program, has announced a 5% reduction in flood insurance payments, which is a terrific development for buyers and homeowners of waterfront houses across Quincy. This development will allow them to save an average of around $150 a year.
If you have questions about budgeting for flood insurance, please contact Red Door Real Estate for more details.
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