The Coronavirus has taken off across the world. According to the Wall Street Journal The World Health Organization just recently designated it a pandemic after it has entered 100 countries. Many people are not sure what to do since there is not a cure.
When people are not sure what to do it can create fear that keeps getting bigger and bigger. Now countries like Italy are quarantining the entire country.
Major sporting events not allowing crowds because of the fear of it spreading.
You have entire school systems shutting down for weeks because of isolated cases.
This fear is now starting to have major impacts on economies around the world as Chinese and U.S. stocks have plummeted with the unknown.
In this episode of the podcast we discuss how this new virus and the fear it has caused can relate to flood insurance and flood maps we use everyday.
Everyday we hear from people who say they heard flood insurance will be $5000 on property when it should be $1000. The problem is the fear of the unknown then stops them from buying their dream home.
Then there are those people who think they are stuck in a high risk flood zones forever. However what they fail to realize is that many times these flood maps are inaccurate or constantly changing.
Let's look at the two biggest fears on flood insurance and address those.
- I won't be able to resell
- There is only one flood insurance option
Looking at resell value on a property when purchasing is important. You don't want to buy a property you could get stuck with or a property that might lose value. When it comes to flood insurance it should not stop you from reselling the home. So many people do not realize they can transfer their flood insurance to the new buyer.
Trust me I know all about this. Back in 2011 I found the perfect home in Monroe Georgia. I was not even looking for a house at the time but this foreclosure popped up on the market. It was the perfect two story with about two acres. Everything was going great and then BAM! two weeks before closing they tell me it's in a special flood zone. I say to the realtor that would have been nice to know.
So I let the mortgage company get a flood quote for me, well that was a mistake.
The quotes come back at $3000 a year and the realtor says that's why the other deals fell apart. However that quote was not accurate I was able to prove the house was built to compliance. As a result the flood insurance was grandfathered at $350 a year. Thats a long way from $3000.
You see had the other buyers done their homework they would have seen there was nothing to fear because 5 years later we had this property removed from the special flood hazard area.
The other thing that people fear the most when it comes to flood insurance is the options. You see most people think there is only one option for flood insurance thats it.
This is not the case there is a separate private market for flood insurance that could be 40-50% less for you. However many people are not aware of these options because many insurance agents fear understanding and offering flood insurance.
Thats probably why many come to us for their flood insurance needs.
So before you bail on that dream home, make sure you understand flood insurance. If you fear you are not being given the right information then make sure to visit our website or our YouTube channel where we do daily flood education videos.