Many properties on the island of Kauai are in flood zones. How do you know if you need flood insurance?
Generally speaking, if you have a mortgage on your property, the lender will require you to carry flood insurance if you are in a flood zone.
What if your property has two or three different zones running through it?
In such a case, an elevation certificate would help clarify what insurance is needed if any. For example, the improvements on the property may or may not be in the flood zone. An elevation certificate can be acquired by survey.
Not all surveyors will provide an elevation survey, so let us know and we can help you find the appropriate surveyor.
FEMA has guidelines for determining if an improvement is within the flood zone. It is a FEMA map (link) in conjunction with the elevation survey, that will indicate which part of the property is in which flood zone. More specifically, it will indicate if any part of the improvement is in a flood zone.
The state of Hawaii also have a website to reference (link). Always consult with your lender to know the insurance requirement, and consult with an insurance provider to know the cost. This is important if you are buying or selling.
As a buyer, you need to know what your monthly expense will be to insure the property for which you have a mortgage.
As a seller, you need to know what potential buyers are facing as an expense to finance and carry the property, as the extra burden of flood insurance could limit the number of interested buyers.