If you have ever purchased a home on the Oregon coast, or any coast in the USA for that matter, then you have probably heard of the "flood plain addendum." It is not only for dwellings close to beaches but anywhere there is a creek, stream, river, waterway that can rise or fall, these are considered special flood risk areas and this article is going to introduce you to the basics of flood plains.
I have first hand knowledge of the flood plains and how they affect your home purchase. I bought my home in 2000 and it is influenced by the Siletz Bay and Drift Creek estuaries. A flood plain is defined as an area that is subject to natural flooding from an adjoining waterway. In the real estate market, a home in a legally defined flood plain is eligible for purchase of federal flood insurance. You can determine if your home is eligible by looking at the National Flood Insurance Program Maps.
The Oregon Association of Realtors has an excellent resource called the "Flood Insurance Toolkit" that you can download and get much deeper into this topic. The NFIP organization was quite aggressive in implementation of the program to start and prices for flood insurance was skyrocketing but in 2014, Obama signed the "Homeowner Flood Insurance Affordability Act." which immediately repealed FEMA's authority to raise premium rates at the time of property sale along with other repeals that slowed down this federal program slightly.
There is much tweaking and adjusting to this program in order to make it a viable program. What it all boils down to is if you're buying a home and it is near any waterways, make sure your real estate agent is educated in the floodplain addendum requirements for the county you are buying in. You will pay for the risk in extra insurance premiums and it will increase on a yearly basis so knowledge is very important. If you have any questions about the floodplain addendum or flooding in Lincoln county in general, just drop me a line with your question and I will do my best to send you in the right direction to get the answers.