When buying property in Destin or along Highway 30A, it’s essential to understand how flood zones can impact your investment. While it’s perfectly fine to own property in a flood zone, knowing the details is key. Every property on the Emerald Coast technically falls into a flood zone, with the most common being:
Here’s what you need to know about flood insurance:
Before making an offer or during your due diligence, contact a local insurance agent. They can quickly identify whether the property is in a COBRA area or flood zones X, AE, or VE. If the property is in Zone X (not in COBRA), they can provide a quick quote. However, for zones AE or VE, an elevation certificate may be necessary.
Your Realtor may have insight, but flood maps can be complex and change over time, so always confirm with an insurance expert.
Here us a link I often use from FEMA:
COBRA (Coastal Barrier Resources Act) areas are excluded from the National Flood Insurance Program (NFIP). If a property is in a COBRA zone, private flood insurance will be necessary, often with higher premiums. Some buyers in COBRA zones choose to self-insure due to the costs.
A FEMA-funded flood insurance policy typically costs around $700–$800, whereas a privately insured flood policy can cost up to three times as much.
Key considerations for COBRA properties:
Flood Zone X is the most favorable designation because lenders won’t require flood insurance. However, if the property is in a COBRA zone, private insurance will still be necessary, which can be costly. While flood insurance isn’t required, you may still want coverage for peace of mind. Remember that rising water is not covered by hurricane insurance so I always advise flood insurance.
If a property is in AE or VE but not within a COBRA area, you can purchase NFIP flood insurance as long as the property meets elevation criteria. Always request a quote before making an offer. In these zones, an elevation certificate will likely be required to determine insurance costs, which can vary significantly between homes.
I always recommend checking the property’s elevation when evaluating potential purchases. Additionally, when submitting an offer, you can include an addendum that provides an option to withdraw if the insurance costs turn out to be too high. Start gathering insurance quotes as early as possible to ensure you have the necessary information and flexibility to make an informed decision. This proactive approach helps you avoid unexpected expenses and gives you the opportunity to back out if needed.
A Letter of Map Amendment (LOMA) is a document that can officially remove a property from the designated floodplain if it has been inaccurately classified. This process verifies that the property is situated on naturally high ground and above the base flood elevation. Additionally, some builders may request a LOMA if they have constructed the home at an elevated height that exceeds the base flood elevation.
Flood zones are a critical factor to consider when buying property on the Emerald Coast. Take the time to do your due diligence by consulting with insurance agents and reviewing maps. This preparation will ensure you make an informed decision and avoid unexpected expenses.
For additional information or assistance, don’t hesitate to reach out.
Sabine Robertson
Broker Owner
Independently Owned and Operated
850-830-6461
Santa Rosa Beach FL, 32459
