After spending time searching for a new home, finding one can seem like the end of a journey. However, if the home is in a flood zone, you might be hesitant to move forward with the purchase. Although being in a flood zone is a deal breaker for some people, for others it is not. If you are considering a home in a flood zone, here is what you need to know before buying.

What Can Living in a Flood Zone Mean?

A misconception about flood zones is that they are all consider high risk. However, there are levels to how at risk your home is for flooding. The risk level of the home should be factored into your decision of whether to buy.

If the home is in an area with a moderate to high risk of flooding, you could potentially find homes are lowered priced than other areas. However, your homeowner's insurance could be higher. Depending on the area, you might be required by the government to purchase flood insurance.

For instance, if the home is in a zone A flood zone, you will have to buy flood insurance. The same applies if the home is in a coastal area that is classified as being in zone V.

It is important to note that even if your home is in a low risk flood zone, there is no guarantee that you will not have to purchase flood insurance. Your lender could require you to have the coverage as a precautionary measure.

What Can You Do Protect Yourself?

If you do decide to buy a home in a moderate to high risk flood area, there are steps you need to take to protect your investment. One of the most important is to obtain flood insurance quotes before the closing is complete. If you cannot afford the additional coverage, you might be forced to keep looking in another area for a home.

Heavy rains are not always the cause of flooding. If the home you want to buy has flooded before, your state likely requires that the owners disclose this to you before closing. You and your real estate agent need to make sure that the purchase agreement allows you to back out of the contract or holds the seller financial responsible if he or she did not disclose damaging flooding that was disclosed later.

Work with your real estate agent to find other ways to protect yourself when buying a home in a flood zone.