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It behooves you to consider the risks carefully. If risks to the property change over say 40 or 100 years, the value of the property will be impacted.

Buying a high risk property means taking that risk.

You assume that it is possible to see or understand these risks, particularly when it is impacted by farms 20 miles away being turned into subdivisions. Or how about the recent flooding and mudslides in CO, where a major contributing cause is believed to be the deforestation from last years fires? So many of those people did not have flood insurance. It is a misconception that a property is not at risk for flood because it it not within view of a creek or other body of water.

FEMA changed our flood maps in the area about 7 years ago. Very impressive how many homes were now subject to required flood insurance, even though the requirement was not there when the place was purchased, and there was no flowing water to be seen nearby.

Why do I need flood insurance, even though my community has never been flooded?

Flooding occurs in moderate-to-low risk areas as well as in high-risk areas. Poor drainage systems, rapid accumulation of rainfall, snowmelt, and broken water mains can all result in flood. Properties on a hillside can be damaged by mudflow, a covered peril under the Standard Flood Insurance Policy.

Someone recently expressed the erroneous belief to me that they could not buy flood insurance because they were not in a flood plain. Nor was their neighbor whose basement filled with water in recent extreme flooding. I expect flood insurance to become required by all gov't insured mortgages within the next couple of decades. So many properties that get flooded are not in flood plains, with the floods taking unexpected paths into "low risk" properties.

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