We've seen 25 - 40% increases here in SE Wisconsin and N Illinois areas. If you carry a mortgage you will be required to carry flood insurance. It's gotten difficult and the mortgage companies are relentless. I personally would never consider purchasing on a river or ocean but that's because I sell flood insurance. If the structure itself is not in a flood zone then it will be worth getting a certificate of elevation completed by a surveyor. If the structure is elevated above the water level it will also be a good idea to get the certificate of elevation. I've seen premiums as high as $5000 in flood zone AE. Call your insurance company and get a quote on the property before you make this decision. They will order a flood determination and be able to give you an idea of what the premiums worst case scenario would be. A certificate of elevation can help decrease the worst case scenario. Ask your realtor to check with the seller to see if they already have a certificate, atleast then your insurance company will have some ideas as to the risk.

I absolutely would not buy a home that required flood insurance. It will go up and up and up. Do you want that?

Another thought. You will be paying for all of those people who collect on floods over and over. Don't do it.

It's not always expensive. There are many variables. I am directly on the water (can hear dolphins splashing out my window...can even hear them breathing through their blow hole out my window). My annual flood insurance premium is less than $300/year. No, I didn't forget a zero. Also my policy isn't subsidized.

The key point to reasonabl flood insurance is making sure the home's elevation is above FEMA's required elevation. If the home is below FEMA's required elevation, that's when insurance can get very expensive and some of those policies are artificially cheaper because some are subsidized.

A licensed surveyor can create an elevation certificate...they measure the home's elevation and they specifiy what is required on it also. Take that to an insurance agent and get an insurance quote. The same home's premium can vary siginficantly based on if the home's elevation is above (and how many feet above) or below FEMA's required elevation.

sweet_tea's post has great info but I do want to add that flood maps can and will be redrawn.

The new zones may be in your favor or they may not. I would use common sense. If you are near a river and your current elevation is right on the edge of a more risky zone, I would suspect that at some point that you might get hit with a change and a larger premium. If I bought near water, I would make sure that a had a couple of feet of cushion in my elevation certificate.

Here is a link that might be useful: floodsmart.gov

thank you all so much for the information---i really appreciate all your points of view. I have since found another house, also on a river/lake, but this one is really high up (the other house was very close to the shoreline). I would not need a mortgage (I would still pursue flood insurance for my own piece of mind tho) to buy this one---the problem is, is that it is butt ugly lol (see my other post in this forum).

In 1976 this house was not considered in the flood zone but when i plug the address into the govt flood zone site, it says its in a high risk area. This is a foreclosure so I can't find out if an elevation study has been done :(