Understanding Flood Zones
Most of Katy, Texas Real Estate is not within the boundaries of the 100 year flood zone. However, some of it is and it is vital to know if a home one plans on purchasing is located in the this flood zone. There are many mistaken people when it comes to what a flood zone really means. This misinformation that is accepted as the truth is important to dismiss so that a person can see clearly with regard to flood zones and the insurance required.
Can a home that has flooded in the past be insured against future water events? Some home buyers and homeowners in Katy, Texas say no, but they are wrong. As long as the real estate is in an area that participates in the National Flood Insurance Program, buildings can be insured against future floods, even if they have flooded in the past.
It is impotant to understand that this flood insurance will cost more money as a result of being in the 100 year flood zone, but the real estate property in Katy, TX can be insured. It is considered “Single Peril” insurance and is sold seperately by private insurance companies and backed by the federal government.
So, what is the 100 year flood zone? First, it does not mean a flood will only occur once during a 100 year period of time. It means there is a 1% chance that a major flood will occur in any year. Therefore, if it flooded a home in Katy, Texas located in the 100 year flood zone last year, there is still a 1% chance that the Katy, Texas home could flood again the following year. Or any year following for that matter. These areas are considered to be high risk flooding areas – a 26% chance of a flood over the life of a 30-year mortgage.
There are also other variations in the flood zones for specific areas and while a home for sale in Katy, Tx may not be in the 100 year flood zone, the property may still require extra insurance protection before a lender will close on a loan. In fact, it is not a bad idea to to insure your home in Katy, Texas, or anywhere else, against flooding even if your Katy home is not located in any flood zone. The insurance is cheap if the property is located outside of the 100 year flood zone and protects your Katy property against some events that are not covered in most ordinary homeowner policies. Furthermore, 25% of all flood claims come from areas considered to be at low-moderate risk for flooding. So think about it!
People buying homes in Katy, Texas, or any Katy, TX real estate for that matter, should be aware of the flood risks and have their facts straight about insuring their property. For more information on flood insurance, risk of flooding, and tips for homeowners visit www.floodsmart.gov.
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For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed REMAX real estate agent in Katy, Texas you can trust. You can contact him directly at 281-994-5173 or visit him on the web at www.katyfamilyhomes.com.
Filed under: Buyers, Flood Zones, Katy Family Homes, Moving, Relocation
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