Flood Insurance 101: What Buyers Need to Know
When you're buying a home, there are a lot of moving pieces to consider—location, condition, financing, inspections... the list goes on. But one thing that sometimes surprises buyers is flood insurance. If you're purchasing a home in a designated flood zone, it's something you need to know about—and in most cases, you won’t have a choice.
What Is Flood Insurance?
Flood insurance is a separate policy that covers damage to your home and belongings caused by flooding—something not included in your standard homeowners insurance. It’s typically purchased through the National Flood Insurance Program (NFIP) or a private insurer.
Is Flood Insurance Required?
If you're taking out a mortgage and the home is located in a FEMA-designated Special Flood Hazard Area (SFHA), then your lender will require flood insurance—no exceptions. This is to protect their investment in the event of flood damage. Even if you’re paying cash or the home is just outside a flood zone, it's still something to consider.
Why It Matters in Knoxville (and East Tennessee)
Knoxville and the surrounding areas are full of lakes, rivers, and creeks. While that makes for beautiful views and great recreation, it also means some properties are more vulnerable to flooding—especially during heavy rain seasons or sudden weather events.
Before you buy, your real estate agent (hi, it’s me!) can pull a flood zone determination so you know upfront whether a property requires flood insurance. If it does, I’ll help you get quotes early so you’re not caught off guard.
The Cost Factor
Flood insurance premiums vary based on the property's flood risk, elevation, and coverage amount. In higher-risk zones, it can be a few hundred to a couple thousand dollars per year—so it’s important to budget accordingly.
Peace of Mind, Even If It's Not Required
Even if your home isn't in a high-risk flood zone, that doesn’t mean it can’t flood. In fact, more than 20% of flood insurance claims come from homes outside high-risk areas. If you live near water or in a low-lying area, it's worth exploring a policy for peace of mind.
Bottom Line
Flood insurance isn’t just a formality—it’s a crucial part of protecting your home and finances. Whether you're buying your first home or your forever home, understanding flood risk is key. I always help my clients navigate this step and connect them with trusted insurance providers so there are no surprises at closing.
Have questions about flood zones in Knoxville or need help finding a home that fits your lifestyle—and your budget? I'm just a message away.
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Karli Pritchard, REALTOR®
