A daily journal concerning Lake Vermilion and surrounding areas.
Selected real estate, notes, stories, musings, and anecdotes.

March 17, 2003

Flood zone mapThe Flood Zone.

One of the potentially troublesome issues associated with the sale or purchase of real estate is flood zone determination.

Many areas near or adjacent to Lake Vermilion are identified as having some degree of flood hazard. Flood insurance is required for all structures located in a “Special Flood Hazard Area” (SFHA). By definition, a SFHA is an area…

“that has at least a one-percent chance of flooding in any given year and a 26-percent chance of flooding during the life of a 30-year mortgage.”

If you are buying real estate your lender may secure a flood determination to establish the flood risk. A FEMA flood zone map will probably be used to make this determination. (There are more than 100,000 existing maps including a group for the Lake Vermilion area.) Because map interpretation is a subjective process, your lender may require you to purchase flood insurance for a property that, arguably, is not subject to flood risk.

There are practical solutions for this issue. The key is to identify the situation early in the purchase process so there is ample time to identify the best answers.

There are some frequently asked questions on the subject here and here . Or send me an email . I have additional details and area flood zone maps.

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