Buying a Home in a Flood Plain

There are various areas in Indianpolis which require flood insurance due to the elevation of the property. The federal government offers subsidized flood insurance for up to $250,000 and the cost is approximately $1600.00 per year. Mortgage lenders require that homeowners pay for this insurance on top of the regular home insurance they require. Sometimes the flood plain is on the land and does not affect the home. If that is the case, the cost for flood insurance is somewhat less. Another important point to be aware of is that homes in a flood plain are allowed a one time exemption (no exceptions to this rule) to add onto a home in a flood plain. If you are considering buying such a home and adding onto it, you will need to contact the Code Enforcement Division of the City of Indianapolis. I was told that in order to add improvements, a homeowner has to have 4 different permits: 1. improvement location permit 2. structural permit 3. drainage permit 4. flood permit The people to contact with questions about this subject are Jim Miller, 327-5574 or Donna Price 327-5459. Be sure to ask whether the one time exemption has already been used if you are considering purchasing a home in a flood plain and wish to make improvements.

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