Flooding occurs due to several different circumstances. A pipe bursts in your house. The City performs street maintenance and taps into the water main by mistake. A heavy rainfall. Nearby construction. The chances of any of these happening are very slim. On the other hand, living in a flood zone means that you run a higher risk for flooding than other homeowners elsewhere. Living near the Arkansas River means that we run the risk of flooding our Tulsa homes from time to time. But does that mean you should not purchase your dream home in a flood hazard zone? No. However, you do need to know a few things about them before you buy a home in one.
Tulsa Flood Zone Info
What is It and How Do I Know if I’m in One?
A flood zone is an area of land that FEMA defines as containing a specific risk for flooding due to historic data. Insurance companies use this information to determine the risk potential for a property and their rates in accordance with the risk. Flood hazard zones fall within four sub-categories: V (very high risk, coastal), A (high risk along lakes, rivers, ponds, and streams), B (moderate risk), and C (low-risk). Insurance companies might also use the term Special Flood Hazard Area (SFHA) in lieu of A or V if there is a risk for flooding within a 30 year time period. Keep in mind, though, that these zones may change after future flooding occurs in the area. So what may currently fall in the C category could potentially become an A risk. That usually translates to higher flood insurance rates in the future. Take a look at the Tulsa County Floodplain Map to find out if a property you like is located within a flood zone.
Will a Bank Still Approve My Loan?
Yes, if you use a VA, FHA, Fannie Mae, Freddie Mac, or USDA loan to finance your Tulsa home purchase. But you must also buy flood insurance. If you choose to finance your mortgage through a private lender, you may not need flood insurance as long as your property falls outside of an SFHA zone. But they might ask you to acquire flood insurance anyway. Talk to your lender about their flood insurance requirements before signing your final documents.
Potential Risks and Benefits of Living in a Flood Zone
First, the obvious risk is that you have a higher chance of experiencing a flood. Therefore, flood insurance costs more for you. Plus, your flood insurance may not cover all of your expenses to repair/replace whatever gets damaged. Normal homeowner’s insurance usually does not cover flood damage when you live in a flood zone. It may not even cover flood damage from a burst pipe inside of your home no matter where you live. So buying flood insurance no matter what could help you.
On the other hand, properties in flood zones tend to be more popular due to their location. Because of this, their location in a flood hazard zone has virtually no impact on their resale value. That is great news if/when you decide to sell your property down the road.
Weigh the pros and cons of living in a flood hazard zone before you decide to buy your next Tulsa home. But call me first so that I can help you find your dream Tulsa property.
Lori Cain, REALTOR®, Serving Midtown and the greater Tulsa, OK area. Call 918-852-5036.
