I suggest a real estate attorney. You're in an area where you could make a mistake you'll discover later.

Flood maps are largely guesswork in most places. The reality is that being just outside the "official" flood zone doesn't make your house any safer, and you'd absolutely need flood insurance anyway. It could make the flood insurance cheaper, though.

If you are worried about flooding, an on-site assessment would need to be made by a local firm that specialized in assessing natural hazards. Your real estate agent of closing attorney should be able to assist you in finding the appropriate professionals.

I suggest you try to find out how much the flood insurance premiums would be - if the house is significantly above the required elevation, it might not cost much.

Talk to your insurance agent. You will probably require a flood certificate, which is done by a licensed surveyor. He will shoot the foundation elevation and record that on the certificate. If it is above the flood line, you don't need flood insurance.

Call around to local surveyors and ask about getting the certificate. Best guess is a few hundred dollars. The surveyor who did the boundary survey will usually be the cheapest, since he will already have his marks set on the property.

FWIW, part of our property is in the flood zone (house is not, short bit of driveway is) and the lender did not require either flood insurance or certificate. Don't know about the homeowners insurance yet.

You need to do more research about flood insurance or hire a professional to explain it to you. It doesn't appear to me that it would be a serious impediment to buying the house. You could probably get the seller to drop the price enough to pay for many years of insurance. Cheap insurance is a good thing.

Here is a link that might be useful: flood info

Just ask the folks who live near the Chattahoochee in Atlanta. Flooding this fall was at a 500 year level. There are several multimillion dollar houses built in a flood plain on "mounds" that approximate at least the 100 year flood level (may be higher). They were only accessible by boat.

My parents back up to a flood plain in which a barn is built on a 100 year flood level. Water almost covered the barn. I wouldn't mess with a flood issue :)

Flood insurance is probably the most misunderstood coverages to to most homeowners (and also a majority of agents!!) For example, a lot of people say "I'm not in a flood zone." WRONG. EVERYONE is in a flood zone! EVERYONE! The entire country is mapped by FEMA and a corresponding zone is assigned. That said, if you are in flood zone A or V then you will most likely be required to carry flood insurance according to your lender. Most of us not on an ocean coast (V) or major river/low lying area (A) are in zones B or C and flood insurance can usually be bought for around $200 or so a year because it is a preferred rate. Creekside and macv are correct- talk to an agent that knows something, and depending on the age of your house and when your community started participating in the flood program (or maybe they haven't yet) then you may have to get an elevation certificate.
Two things to keep in mind- flood maps change, and banks always have an old map.
Start by asking your agent to do a quote, he/she will start by doing a 'flood zone determination'. If it comes up A or V then you are required to purchase flood insurance. If it is anything other than that, take the flood zone determination to the bank. If they won't budge, find a new bank!

When we builty our home 8 years ago we ran into a similar issue. The vast majority of our 16.5 acres is within the 100 year flood zone area. We knew that up front. Actually it was one of the reasons we selected the lot. It's heavily wooded back there and can never be built upon behind the woods. Our house is built at least 400 feet from the start of the flood area. The lender was questioning the loan and the need for flood insurance about a month or so before closing. We had a mortgage survey done which clearly showed the house is well above the flood zone. Since we've moved here we have had a 1000 year flood and a 100 year flood. It was kind of interesting as the waters didn't come within 1300 feet of the house. Get a survey done that shows the house is safer. Would it be possible to move the driveway several feet so it's not in the flood zone?

I am so thankful for this forum and for the incredible knowledge offered here. Thanks to everyone who has offered ideas and in-put. This is such a huge deal for us and we need to cover all bases.
scercrcr- A real estate attorney is a great idea and may be able to help figure things out and help us decide if this is worth it.
alabamanicole - The owners are working with the original surveyor and this week are doing an elevation test and a new flood certificate. The house was built in 2006 and the surveyor used a FEMA map from 1979 because the 2004 was printed but NOT certified so he coudln't use it at that time. Now that it is in use it shows the corner of the property in the flood zone. Both of our agents and our lender is working on it as well.
carterinms - we were told the cost of flood insurance would be between $350 and 400 per month on top of the mortgage payment. That is not a set amount just what we were given as a a probable but that still makes it WAY WAY WAY over budget.
creekside - Both real estate agents are looking into other lenders for us. The owners are working there fannies off trying to get this cleared up. I really feel sorry for them and must say they have been fabulous to work with. My DH felt so bad for them because as he was walking around with the surveyor he got the call yet the home owner was in his man cave (which is a HUGE well built one with wall to wall shelves and storage with a ncie loft area) and he didn't even know. It made my DH feel terrible.
macy - IF we get this house it's not only a beautiful home but very energy efficient and well built. The builder is a custom home builder and had plananed on living in it about 10 years. He spared no expenses and built it extra well for he and his family. The beginning sales price was $279,000 and I watched it come down to $259,000 then $249,000 and stayed there for MONTHS. We offered $229,000 and they didn't accept it then 3 weeks later came back to US with an acceptance plus they will give us the huge custom built entertainment center, custom built hutch in the kitchen plus the dining table, 8 chairs and 4 stools which all match. They are large/huge pieces and they don't want to move them. Their agent talked to them for days saying to re-think our offer as they NEED to sell and it's been on the market about a year (as most of the nicer homes have in the area) The sad part is that I won't buy it if we can't clear this up. My niece said if a house has to be this much work it's not meant to be.. but we wonder if this is our test to see if we're willing to work and wait on our next dream place.
It's 2550 sq ft with a large simple bonus room upstairs, a great laundry room, 3/2/3 and office (which is open to the living area and will be used for my piano room) nice pantry, gorgeous Master and master bath, 14 acres (part in flood zone)a great man cave, large deck in the back, nice landscaping, some woods, all the extra things a builder would add to his own home including gutters, sprinkler, lawn, plus many other extras,and you don't get in a builders spec home.
My DH is going to call FEMA hopefully today. We also spoke to a friend over the weekend who was a civil engineer contractor with FEMA and he said we are doing the things he'd suggest.
athensmomof3 - OHHH your story makes me re-think this seriously and my heart goes out to those people. This is exactly the reason we are fearful of buying this place YET something keeps calling us back to it. We've looked for 6 months and a nice home but from the second we walked in it felt like "HOME"... it's hard to forget that feeling. We've seen others we liked and if we had to buy something right now they would be OK but they didn't speak to us like this one has.
betaiota - I guess I need to find out what zone it's in. Maybe we've been told and I'm blonde and don't remember. LOL The house is 3 years old and in the country with a few scattered homes around it and not in city limits. The owners are getting an elevation study done and I beleive a new flood certificate. As I said they've really taken the ball and are working SO hard to figure this out.
Sisof3 - I hope things work out for you as well and that you don't have to purchase any expensive flood insurance. As everyone has said it's confusing and seems to be left to a lot of interpretation by others.
I will keep you updated. In the meantime we are talking to the builder again next Monday and after we get some numbers we can make a better decision. I've worked with him and gotten a great start on a floor plan but as I said DH is NOT happy about building. So... I tell everyone we are homeless for now. :)
Thank you for al of your help,
Sunny

If the house structure itself is above the 100 year floodplain (as verified by a surveyor- get a FEMA flood elevation certificate) they you should not be required by a lender to purchase flood insurance (which is through the NFIP- the federal govt) If the house is above the 100 year level, even if you would be required to purchase it, it should be very inexpensive.

My home is on a river, in a A zone and in the 100 year flood plain, but finished floor is elevated 2 feet above the 100 year flood level which the county required, any my coverage for about $450,000 is only a little over $700 per year. All flood insurance is through the National Flood Insurance Program, and any agent should be able to get you a quote, but the quote is based off of the surveyors flood certificate which is the first thing you need, and will tell you everything.

Sunny, thanks for your good wishes but everything has already worked out for us. I didn't explain it well in my post. Our property was redesignated by FEMA as a result of our request to them and supplying them with the elevation certificate from the surveyor. The result of that redesignation is that we now do not have to have any flood insurance at all. I was suggesting that you could do the same as you said that the house itself is not in the flood zone.

As far as fearing purchasing a property that is close to a flood zone is concerned, I read that about one third of all flood claims are from OUTSIDE of designated flood zones and that only 1% of homeowners in these supposedly 'safe' areas have flood insurance.

I also read that typical flood insurance, for $250,000 of property damage plus $100,000 personal effects loss, costs between $200 and $1000 per year. The higher number is for insurance in an area considered to be a special flood hazard zone. If the property you are considering is redesignated as some of us have suggested, any flood insurance should be very inexpensive and certainly not a deal breaker for a house you love.

I would be very cautious as Dh and I used to live on a river for 15 years and never flooded but came close 2 times. The first 5 or so years we were NOT required to have flood insurance but then the area was rezoned! So that can always happen down the road. Our insurance was about $350.00 for the YEAR and by the time we moved last year we paid about $700.00 per year.
Good Luck!

I don't understand why the bank would require flood insurance if some of the property but none of the structure is in the flood zone. Flood insurance covers the structure only, not the land. If the land floods there is no claim.

The bank we used tried to pull this as well, on the day of closing in fact. The map clearly showed that the "flood zone" is a pond and our house is more than 75' from the pond (I had a survey showing the foundation location), as well as higher in elevation than the pond. I had to get a civil engineer to write a report basically saying that. It cost $400, it would have been less but it was over the holidays and we needed a rush (it was less than a hours work because I already had the survey, he just did a site visit to verify). We have had TWO "500 year" floods since then, not a drop of water in the basement.

My DH once bought property where the map was more vague (more rural, on a river). He had to get a map amendment done. That is a more expensive and lengthy process. He said it took about 6 months. They call it a LOMA.

For those interested, you can generate your own section of a Flood Insurance Rate Map (FIRM) from the instructions on the FEMA page linked below. The generated section is called a FIRMette.

I have found it helpful to have a FIRMette in hand when discussing anything to do with FEMA flood zones or flood insurance.

The FIRMette is considered an official FEMA document.

Here is a link that might be useful: FIRMette Instructions

I was a bank examiner for years in Georgia and Florida. Many, many bankers don't understand how to read the flood maps! An attorney should be able to help, but flood insurance on minimally improved property is cheap!

I'm in FL and we pay the maximum flood insurance for our home. Flood insurance is a Federal program and rates are reasonable. The cost should be the same from any insurance company. On coverage of $200,000 for the building and $100,000 for contents, our bill is $348 per YEAR. I think the numbers cited for the OP were accidentally given as monthly and SHOULD have been annual payments. But since the coverage would be for unimproved land and a small portion of a driveway, the cost would be very low.

We have decided NOT to take this property. We have lost sleep over this and gone back and forth with no clear decision until yesterday. Day before yesterday were told we had a clear flood cert and we were SO HAPPY but then when we did some digging we realized that the loan would be sold and we'd require a new flood cert and would be fighting it again, eventually. From what we've been told there is a HUGE chance that we'd be required to have flood insurance on the land and house and it would cost $350 per month over our mortgage. I wish it was cheaper as some of you are finding but both our realtor and lender looked into it. Our lender wasn't able to get any financing but the other realtor found a lender in Dallas who would but they said once we had a clear flood cert we would never have to have flood insurance again. This is NOT TRUE. As we know this can always change and we don't want to fight it.
I honestly feel sorry for the owners as they have done a lot of work and had extra expense and have been wonderful to work with but we have to do what's best for us. We lived with water in our yard at our last house for 19 years and had water in the garage several times and feel it's best to go another direction.
I'm sad but also relived. As much as we like the house there was a part of us that continued to worry and that should be a sign that it's NOT right for us.
Thanks to everyone who offered input. Be watching for an update on building now!!! LOL
Thanks and HAPPY HOLIDAYS,
Sunny

Sunnny, it sounds like you have made the right decision for yourself, but in case anyone else in a similar situation comes across this thread, what beachlily said is correct - your flood insurance would have been per year, not per month. The only way it would have been that high per month is if the house did not meet the flood elevation requirements, which I gather is not the case.

What do you mean by "Our lender wasn't able to get any financing...."

I agree that flood insurance premiums would not be that high for a house above the 100 year flood level. As to the loan being sold and the buyer all of a sudden requiring flood insurance, I don't see how that could be if it wasn't required in the first place. The buyer can't set new terms and conditions. Read the proposed loan documents.

Better yet, if the house is a good deal, and it calls to you, spend a couple of hundred and consult a real estate attorney. Don't go by rumors or what a real estate agent tells you. A lot of them aren't up to snuff on all this stuff.

I agree that you made the right decision! It is no fun worrying about flooding anywhere near your house!!! Even though we never flooded we always had to be alert about how the river was rising and if we might get stranded either water on the road before our driveway or in or driveway!!! It is just not worth the headache plus the county can rezone in the future! You will be relieved you made the right decision.