Due Diligence: Flood Zone Solutions for Real Estate Investments
For most deals, due diligence is where the real details surface, especially the flood zone.
Due diligence is the most common stage in which National Flood Experts evaluate potential solutions. Here are a few things to know and look for from the seller:
- Copies of the current flood insurance in place
- Elevation certificates for any/all buildings
- Survey documents (ALTA/Topography/site maps)
Why Ask for Copies of the Current Flood Insurance?
- To clarify which buildings the seller's lender required.
- To help understand a deal's Full Risk Premium (if an NFIP policy).
- In some cases, the sellers' flood policies have such a reasonable price point that a buyer may assume ownership of the policies (typically only NFIP policies).
Maximizing Opportunities During Due Diligence
During due diligence, we can determine different paths of action that may benefit the deal, such as:
- Qualifying a cost-saving solution and discussing additional benefits and domino effects it could create.
- Helping determine if onsite fieldwork may be a worthwhile venture.
- Qualifying a change to the flood zone and eliminating any expected flood insurance requirements.