April 15, 2022

Buying a Home in a Flood Zone

If you’re looking for a peaceful waterfront or riverfront environment, there’s always a risk that you’ll find your dream home in a flood zone. But what do you do when your dream home is built in a flood zone?
Here’s what you need to know to make an informed decision.

How do you Know if a Home is in a Flood Zone?

Severe flooding sometimes makes the news. But you can’t rely on these types of events alone to determine if a property is in a flood zone.

The first step is to visit the Ministry of the Environment and Climate Change’s website. There you will find a map that will give you an idea of what areas you should watch out for. Then, it is essential that you consult the municipality to determine whether the information on the map is correct.

What are the Risks?

Flooding can occur in spring when a river overflows or during big storms on a seashore. Some homes may also have been built at the bottom of natural pools where water collects during heavy rains.

The risks can be quite significant, because water can greatly damage a house when it rushes in. It can even make the house uninhabitable.

While it is possible to recover a home after a disaster, the severity of the damage, particularly to the structure, can make it very expensive to repair.

Don’t forget to think about your belongings: your keepsakes or belongings can be destroyed by a flood.

Even if your home is not flooded during a major flood, its value may drop because your community’s name is now associated with a major flood.

Don’t hesitate to ask questions to the locals to find out more about the history of any flooding. When you visit the house, be on the lookout for signs of past flooding. Most importantly, ask for a pre-purchase inspection.

Is it Possible to Insure a House Located in a Flood Zone?

Yes, but it is somewhat more complicated. Whatever the case, it’s important to talk to a representative in home insurance, to find out what’s available. Even if you can get coverage, you should be aware that the exclusions may be more important.

If your home must be demolished after a flood, you may not be able to rebuild it in the same place.

Ask your Real Estate Broker for Advice

Should you buy a home in a flood zone? Every situation is different, and you need to be aware of the consequences of your decision. To make an informed decision, team up with a real estate broker. 

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