Floodplains Explained
Posted May 3, 2007 @ 9:01 pm, Viewed by 607 Visitors, Read 607 Times.What Are Floodplains?
Floodplains are established by determining the areas that flood when creeks, bayous, and river waters exceed their banks. In most cases, floodplains are determined by their chance to flood in the future, hence the 10, 100, and 500 year floodplain references. Many times these terms can be confused as the risk of flood is determined over a long period of time. The Harris County Flood Control District in Houston has broken these floodplains down into one year increments, and given a chance of possible flooding based on a one year time frame for each floodplain.
- 10 Year Floodplain - 10% chance of flooding in a single year - 95% chance of flooding in a 30 year mortgage.
- 100 Year Floodplain - 1% chance of flooding in a single year - 26% chance of flooding in a 30 year mortgage.
- 500 Year Floodplain - 0.2% chance of flooding in a single year - 6% chance of flooding in a 30 year mortgage.
As you can see, when the percentages are broken down into the yearly level they are much easier to understand. It's also important to know that FEMA (Federal Emergency Management Agency) sets the rates for flood insurance and it will not differ between insurance company to insurance company. They will first determine the floodplain you are located in, then using your elevation cetificate that optionally comes when purchasing a survey, will determine the yearly rate for your flood insurance. If you are in need for flood insurance, it is best to speak with your local insurance agent to determine the cost incurred for obtaining a property located in a flood plain.
Is It A Bad Choice?
Buying a home in a floodplain (also referred to as a flood zone) is not necessarily a bad decision if you are deciding to live in an area that is prone to flooding. Many areas in and around coastal cities are located in various floodplain areas. Does this make buying in a home in a floodplain a bad decision? Absolutely not! It simply means that homes in this area are more susceptable to flooding and necessary precautions must be taken. Home owners will have to obtain additional insurance to protect themselves in case of a flooding emergency.
On the contrary, if you decide to purchase a home in the 10 year floodplain, you must understand that this home is very likely to flood during inclement weather. Be sure to review the pros and cons of purchasing a home in a floodplain with your real estate professional to ensure that you are making the most educated and logical decision in your next real estate transaction.
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Steve Castaneda, Realtor, is the team leader of the MyHomeHouston team who specializes in helping consumers buy and sell Houston Real Estate. He has been servicing the Houston community since 2005, and focuses on educating his clients to the most informed and intelligent decision possible. The MyHomeHouston team website enables consumers to get insights into the Houston Texas Real Estate market and also provides access to see property listing using their Houston MLS Search.
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Thanks Paul! Great advice there - even for cash buyers it's important to do this research in advance. I'd even go to advise for those not required to have flood insurance to get it! It's cheap, and we all know that ANY place can flood if there is a weather system suspended over an area for a prolonged period of time.
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Nice post Steve! A couple of add ons -- A good real estate agent will research this for their cash buyers. I'm not sure if it is required to be disclosed in Texas if a home is in a flood plain or not. Also... it's not bad being in a flood plain...in fact there could be benefits by insuring flood insurance is required especially down in your area. We have very good friends who lived not too far from the coast near Biloxi and when Katrina came in their house was leveled by the storm surge. Unfortunately, they did not have "flood" insurance since they were not in a flood zone and the damage (destruction) was characterized as a flood. If their home would have been classified in a flood plain, then their insurance would have covered the damage. Attempts to predict Mother nature are only predictions and certainly can't be controlled. Anyways, You did a good job on the explanation of the 10, 100 and 500 year floodplains. You'd be surprised how many people think that a 100 year floodplain means the area only floods once every 100 years.