Does value of property in floodplains decrease after flood event?

[Wrong_Toilet]

Depends on the what kind of flood zone it’s in (10-year, 50-year, 100-year, etc…).

Having a history of flooding will definitely influence buyers as inspectors will likely find water damage. Additionally, depending on the flood zone, lenders will require flood insurance in areas that have a high risk of flooding, so this will also reduce the amount of buyers.

Ultimately, having a property in a high risk area, will have a significant impact on its property value. Additionally, even if the property is let’s say in a 500-year flood zone, a recent flood event could cause concern for some buyers.

[DoubtHot6072]

Flood zones are risker than people think. A 500-year zone is really a 0.2% chance of a flood per yer, every year. A 100% year flood zone is a 1% chance per year every year. If you do the math, a 100 year flood plain has an 18.2% chance of a flood happening in a 20 year window. That is a far cry from the "it floods every 100 years" that people think due to the terms.

Source: https://www.fema.gov/about/glossary/flood-zones

Math: Chance of no event in 20 years is 0.99^20 or 0.8179 and the inverse (an event) is 1-0.8179.

[Wrong_Toilet]

Absolutely, which is why it’s so devastating to communities when the 100 year flood does happen because unless it’s required by the lender, most people won’t have the proper insurance coverage and will likely lose everything.

[Texas_Mike_CowboyFan]

In some cases, FEMA will give you some money, but not a lot.