The area and land surrounding your home is something many home buyers take into consideration before committing to a piece of property. However, what some home hunters do not take into consideration is the varying outcomes when choosing land. There could be drawbacks to building on floodplains, including higher insurance costs.
A flood plain is an area of land that is near a body of water, usually a stream or river that is known to experience flooding during periods of heavy rainfall. A floodplain can sometimes change as the water around it evolves. If you make the decision to build on a floodplain, your lender will most likely require flood insurance because until your home is paid back in full, it is their money at risk. In addition to this, if your home is instead near a floodplain, you may be presented the option of having to obtaining flood insurance and that could be a large expense.
Since most floodplains can be unpredictable, there are usually rules and regulations on what you may build on a floodplain. FEMA has risk levels to rate floodplains and determine how stringent regulations are.
Your Fort Myers Title Company advises you to take these items into consideration prior to your closing. At Title Junction, we pride ourselves on working with buyers that are having their needs met and property secured all while feeling comfortable with each and every decision.
The real estate business can be tricky and complex. To ensure you can navigate it, call Title Junction, LLC at (239) 415-6574 to receive the guidance and title services you require to make a smart real estate investment.
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties.
Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: How E & O Insurance Works for Title Agents