Sell a home with flood risk

Learn about considerations for selling a home with flood risk.

 

Homeowner hazards disclosure

Before selling your home, you may be required to disclose the known hazards associated with the property. Among other hazards, this may include current and historic flood risk, location within a designated FEMA flood zone, and current flood insurance coverage. The specific requirements for disclosures change state by state, so it is best to check with your local authorities for the specific regulation.  

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Photo courtesy of Dan Moyle  

FEMA Designation

An important factor in selling a home with flood risk is understanding the costs to potential buyers. If the property is in a high-risk flood zone as designated by FEMA and purchased with a federally-backed mortgage, the property owners would be required to purchase a flood insurance policy as well. Generally, these flood insurance policies are provided through the National Flood Insurance Program (NFIP). These premiums may be lowered through investments in the home, such as elevating utilities or the home structure itself. 

 

Buyout or acquisition eligibility

If the property has been affected by a federally-declared disaster, it may be eligible to be purchased by local government programs. 

 

Learn more

Buyouts and acquisitions

About flood insurance

The Community Rating System (CRS)

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