This is a question many buyers don't think about, but it directly relates to the house, the type of homeowners insurance you’ll need and the cost. Buying a home in an area that’s prone to natural disasters will impact you in many ways, including financially.
Many mortgage lenders won't approve a loan application without proof of home insurance. When a home is at risk of flooding or experiencing other natural disasters, insurance companies may:
Deny coverage for the property
Charge an annual premium that results in high monthly payments