Buying in a Flood Zone? This One Overlooked Option Could Save You Thousands

Flood insurance isn’t exactly a thrilling cocktail conversation, but if you’re buying a home in a flood zone, it’s one of those details that can quietly blow up your budget if you're not careful.

Most people don’t know this, but they should: You can often assume the seller’s existing flood insurance policy through the National Flood Insurance Program (NFIP), which could save you real money.

Why this matters (especially right now) Flood zones are more common than people think, and no, this isn’t just about shore houses. Plenty of inland homes near creeks, lakes, and even lower-lying neighborhoods fall into FEMA’s flood zone map. And if you're financing the property, flood insurance is required by the lender.

That’s where things can get tricky. A new flood insurance policy typically comes with two major roadblocks: • A 30-day waiting period, which can throw off your closing timeline. • A premium that’s based on current flood maps and rating models, which may be higher than the seller’s existing rate. In other words, new buyers can end up paying more for the same coverage, with a delay that adds stress to the deal.

Here’s the thing: If the seller has an active NFIP policy, you may be able to assume it as the buyer. What that means: • You keep the seller’s rate (which may be lower) • You get immediate coverage with no 30-day hold • You avoid the extra steps of binding a new policy from scratch

This is especially useful in competitive markets where buyers are under pressure to move quickly, but it’s also a financially smart move.

How it works (it’s not complicated, but timing matters) 1. Ask the seller (or their agent) for a copy of their current NFIP declarations page. 2. Tell the seller’s insurance agent you want to assume the policy. They’ll guide you through a few forms. 3. Submit the documents, usually proof of ownership, the assumption request, and signed disclosures. 4. Close on the home within 30 days of the transfer request to keep it seamless.

That’s it. The policy stays active, the premium transfers, and you walk into your new home covered from day one.

So, who needs to know this? • Buyers under contract on a home in a flood zone • Sellers looking to make their listing more attractive • Agents and lenders working in flood-prone areas • Anyone who hears “flood zone” and immediately panics

This option isn’t widely known, but it’s incredibly helpful when you need it.

In summary, I’ve seen deals get held up due to flood insurance, either because of the 30-day wait or a premium the buyer wasn’t expecting. I’ve also seen buyers save hundreds (even thousands) per year simply by assuming an existing policy correctly.

It’s not a magic fix for every scenario, but it’s a smart question to ask, and it shows you’re paying attention to the real details that impact affordability.

If you’re in the market or working with someone who is and you're unsure how to approach this, please reach out. I’m happy to help you sort through what’s possible—no guesswork needed.