When buying a home, flood insurance is a tricky subject.

According to Realtor, it is not the real estate agent’s responsibility to know if a certain home needs flood insurance, but it is their job to disclose all adverse material features, conditions, and aspects of the property.  If an agent does know that it needs flood insurance, has had it in the past, or that the area has recently flooded or is subject to flooding, they must disclose this information.

If the agent knows about these terms, they also should let the buyer know about the new Reform Act for flood insurance and the fact that the rates for the insurance policies will be higher than what the other homeowner paid.  They may not need to know in exact detail about it, but they should be able to give you a couple of sources to look into it.  Two of these sources are www.floodsmart.gov and www.fema.gov.  Lastly, the agent should be able to present a few different insurance companies from which you can buy flood insurance, so you can shop around for the right flood insurance policy.

If you are buying a house and are concerned about flood insurance, make sure you ask your agent to find out about these items for you so that you don’t fall prey to additional expenses after buying the house.

Posted by Anthony Licciardello on


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