Flood risk is real. According to a report from the Union of Concerned Scientists, over 300,000 homes in the United States are at risk of chronic flooding within the next 30 years, representing over $136 billion in property value. This risk is only expected to increase in the coming decades as sea levels continue to rise and extreme weather events become more frequent.
What can you do about it?
As a homeowner, you should be aware of the potential for a housing bubble fueled by flood risk, and assessing flood risk is the first step in protecting yourself and your investment.
One of the most common ways to determine flood risk is to consult flood maps. These maps are typically produced by government agencies such as FEMA (Federal Emergency Management Agency) or the USGS (United States Geological Survey) and provide information on areas at risk of flooding. You can access these maps online or by contacting your local l floodplain administrator, who is the person in charge of managing floodplain regulations in your area and can provide information on flood risk and any regulation that may affect your property.
If you are buying or selling a property, your real estate agent may be able to provide information on flood risk. They may have access to flood maps or other resources that can help you determine the level of flood risk associated with the property. Your property insurance provider may also be able to provide information on flood risk and whether your property is located in a high-risk area. Many insurance companies use flood maps to determine insurance rates and coverage, so they may have access to more detailed information than is publicly available.
Several online resources can provide information on flood risk, such as the Flood Factor website. This website provides flood risk information for individual properties based on a variety of factors, including flood history, elevation, and proximity to bodies of water. You can input your address to receive a flood risk score and other information about flood risk in your area.
Even if you exercise due diligence, nearly 70% of homes at risk of flooding are not located in designated flood zones, leading many homeowners to believe they are safe from flood damage. Similarly, many investors may be underestimating the potential impact of flood risk on their real estate portfolios, leading to overvaluation and a potential bubble in the making.
By staying informed about the latest developments in flood risk and the real estate market, you can make informed decisions about flood risk mitigation and protection for your property. Some of these actions are:
Elevating Your Property: One of the most effective ways to protect your property from flood damage is to elevate it above flood level by building a raised foundation or installing piers beneath it.
Installing Flood Barriers: Flood barriers can be installed around the perimeter of your property to prevent floodwaters from entering your home or business. There are many types of flood barriers available, including sandbags, inflatable barriers, and metal barriers.
Improving Drainage: Ensuring that your property has proper drainage can help to mitigate the risk of flooding. This can include installing gutters and downspouts, grading your property to ensure that water flows away from your home, and installing French drains or other drainage systems.
Investing in Flood Insurance: Even if you take steps to mitigate flood risk, it is still important to protect yourself financially by investing in flood insurance. This type of insurance can provide coverage for flood damage to your property and its contents, as well as additional living expenses if you are forced to evacuate your home.
If your property is in a high-risk area and you are concerned about the potential impact of flooding on its value of it, or if you don't have a way to assess such risk, it may be worth considering selling before a potential flood event occurs.
At Simply Homes, we use the most advanced technology to offer you an informed, market-fair price for your home within seconds. When we place an offer for a home, we take into account all relevant variables, including flood risk, to give you a cash offer for your home as-is. Just go to our website and try it today!