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Flood Insurance in Charleston

Flood Insurance in Charleston

By on Sep 20, 2013 in Charleston Flood Insurance | 0 comments

Home underwater

Flood insurance in Charleston has been the main topic of conversation lately at our montly sales meetings and between all fellow Realtors. As a Charleston buyer or Seller you may wonder what is all the fuss about?

Recently, I was planning on showing a beautiful 5 bedroom home on the  Isle of Palms. My buyer was interested in this beautiful home. The home boasts “Perfect” home to raise a family, hardwood floors, granite countertops, 2 blocks to beach, recreation center and Morgan Creek Marina. 6 bedrooms 3 full baths and a large inground pool. Freshly painted and new landscaping. My buyer was excited and curious. We set up a showing and the home was beautiful at $675K  (a steal at that price it was originally listed  over 800K)

So what was the deal? Why had the Seller been drastically reducing 25K a month since the birth of the listing? FLOOD INSURANCE! The home had a transferrable flood policy until October 1. The current flood isurance was about $1800 a year. That’s not too bad $1800 a year to live on a Island surrounded by water in the LOWcountry aka Charleston, South Carolina.

In an attempt to salavage the NFIP- National Flood Insurance Program and their 30B deficit congress passed the Biggert Waters Flood Insurance reform Act. This act will affect mnay homeowners and business owners October 1, 2013.

What this means is a bbuyer cannot acquire the flood rate from the seller. This causes Seller market price and the buyer buying capacity to change because the flood isurance rate could go from 1000-6000.  With all new flood Insurance applications, Elevation Certificates will be required in A or V zones. This can cost a buyer between $300-700. This rate increase also could affect current policies 10% a year.

Please visit FEMA’s website for more info as this is not all the changes to be aware of.

Many of the affected Charleston properties are not necessarily those located along the beachfront, but are actually situated further back from the ocean or along a river.

One of of the biggest factors would be the structure’s elevation. For example, a home built on stilts would likely have lower rates than a neighboring home that is situated closer to the ground.



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