Seller disclosure covers only what they know
An Illinois seller's disclosure covers flooding only as far as the seller knows. The state's Residential Real Property Disclosure Report asks three flood questions [1]:
- Does the seller have flood insurance now?
- Does the seller know of flooding or recurring leaks in the basement or crawl space?
- Does the seller know the home is in a floodplain?
The same law says the seller does not have to make any specific investigation to complete the report [1]. So a "no" means the seller is not aware of a problem. It does not mean anyone checked the map. The report itself says a seller not knowing about a problem is no guarantee it does not exist [1].
The report must reach you before you sign a contract [1]. If it arrives after the contract is signed with a yes on flooding or the floodplain, you can cancel [1]. Illinois law gives you 5 business days after you receive it, and you get back your earnest money, the deposit that goes with your offer [1]. The rest of that report is in my post on what an Illinois seller must tell a buyer.
Flood maps are public and searchable by address
Flood maps are public, and you can search them by address. FEMA's Flood Map Service Center is the official public source for flood hazard information under the National Flood Insurance Program [2]. Its first box asks for an address [2].
Illinois has its own door to the same maps. The Illinois Department of Natural Resources coordinates the flood insurance program for the state, and it sends homeowners to illinoisfloodmaps.org and to FEMA's map center [7]. That site comes from a mapping program at the Illinois State Water Survey, in collaboration with FEMA [8].
Its Will County page points to the effective Flood Insurance Rate Maps, the official flood maps, at FEMA's map center [9]. It also points to FEMA's National Flood Hazard Layer viewer. There you can zoom to a spot and print a "FIRMette," a map of a smaller area [9].
Flood zone letters show the risk
Flood zone letters on the map tell you the risk. FEMA calls its high-risk area the Special Flood Hazard Area [3]. The Special Flood Hazard Area is the land a flood with a 1 percent chance in any year would cover, also called the 100-year flood [3]. The 100-year flood means a 1 percent chance every year, not one flood a century.
- A zones (A, AE, AH, AO and others): high risk, inside the 1 percent flood area [3][4].
- Zone X shaded, or Zone B: moderate risk, between the 1 percent flood and the 0.2 percent, or 500-year, flood [3].
- Zone X unshaded, or Zone C: minimal risk, outside the high-risk area and above the 0.2 percent flood [3].
- Zone D: possible flood hazards that have not been studied, so the risk is undetermined [4].
V zones are high-risk coastal areas with storm waves [4]. A low-risk letter is not a no-risk letter. FEMA says 1 in 3 flood insurance claims come from low- and moderate-risk zones [4].
The Illinois Department of Natural Resources calls Illinois very flood prone [7]. The department says nearly 15 percent of Illinois land, about 7,400 square miles, is subject to flooding [7]. The same page estimates over 250,000 Illinois buildings sit in floodplains [7].
Flood insurance is required in A zones with a federally backed mortgage
Flood insurance is required for a home in a high-risk A zone with a federally backed mortgage [4]. That rule applies in communities that take part in the National Flood Insurance Program (NFIP) [4]. In the moderate, minimal and undetermined zones it is not required by law, but FEMA strongly recommends it [4].
In Illinois, 82 counties and 770 communities take part in the NFIP and have adopted a local floodplain ordinance, says the Illinois Department of Natural Resources [7]. Your lender decides whether your loan needs flood insurance. Will County's floodplain form puts it this way: "You or your lending institution must make final determination for the requirement of flood insurance" [10].
Homeowners insurance does not cover flood
Homeowners insurance usually does not cover flood damage. FEMA says most homeowners insurance does not cover it [5]. The Illinois Department of Natural Resources says the average homeowners policy does not [7]. Flood coverage is its own policy.
- Coverage: an NFIP building policy covers up to $250,000 of flood damage to the home [5]. A contents policy covers up to $100,000 for belongings, usually bought separately with its own deductible [5].
- Price: FEMA prices each policy by where the building is, how it is built and how much coverage you buy [12]. How it is built includes the foundation, the first floor height and the number of floors [12]. NFIP rates do not vary by insurance provider [5].
- Discounts: 71 Illinois communities take part in the NFIP's Community Rating System [7]. Property owners there are eligible for discounted flood insurance premiums [7].
Flood policy timing at closing
A new flood policy usually takes 30 days to start [5]. FEMA says there is no wait when you buy it while making a mortgage [5]. So a policy bought with your new loan can be in place at closing.
You may also be able to take over the seller's policy. FEMA says a buyer moving into a higher-risk zone may be able to assume the prior owner's current NFIP policy [4]. That policy may already be paid through its current term [4].
An assumed policy below the full risk rate usually cannot rise more than 18 percent a year until it gets there [4]. A new policy starts at the full risk rate, less any discounts [4]. Question 2 on the Illinois disclosure report tells you whether the seller has flood insurance now [1].
County offices can check a parcel
County offices can check a parcel with you. In Will County, the Land Use Department has an Application for Floodplain and Wetland Request [10]. County staff fill in whether the property is in or near a floodplain, and its zone [10]. For Zone AE, they add the approximate flood elevation [10].
If the property is not under the county's jurisdiction, the form names who to contact [10]. The form also warns that an accurate floodplain determination takes a topographic survey with a known flood elevation, or an elevation certificate for a building [10].
In Grundy County, the Land Use pages link a Flood Plain Interactive Map [11]. Grundy County applies a 50 percent rule to flood-damaged buildings in unincorporated Grundy County [11]. When repairs cost 50 percent or more of the building's pre-flood market value, repairs cannot begin until it complies with the floodplain ordinance [11]. That may mean elevating or flood-proofing the building [11].
An elevation certificate shows how high a building sits compared with how high local floodwaters are expected to get [6]. Ask the local floodplain manager whether one is on file for the house [6]. FEMA says floodplain managers often work in the city or county building, permitting, engineering or land use department [6]. An elevation certificate can help you pay less for flood insurance, FEMA says [6].
What it means if you buy in Illinois
Check the flood zone while you are still shopping, before you write an offer. If the map shows an A zone, ask the seller about their flood policy and any elevation certificate [4][6]. Get a flood insurance quote before your loan is final [5]. The flood check belongs on the same list as the home inspection and, on a country lot, the well and septic check.
Looking at homes in Illinois? The two steps below are where to start.
