Buying a Home in Naperville? A Flood Insurance Checklist Before You Close

When you're buying a home in Naperville, there is a lot to sort through before closing. Price, location, property taxes, the inspection, the roof, the basement and the condition of the home all deserve attention.

After years of helping buyers in this area, I've learned that it is much easier to investigate something before closing than deal with a surprise afterward. Flood risk and drainage are worth including in that process.

That doesn't mean every home near the DuPage River is a concern, or that a home farther away has nothing to check. The important thing is understanding the specific property you are buying.

Start With the Address, Not Just the River

Naperville and the DuPage River naturally go together, so buyers sometimes judge flood risk by how close a home appears to be to the river or one of its tributaries. I wouldn't rely on that alone.

Floodplain boundaries and drainage conditions can vary from one property to another. A home that looks close to the river may be mapped differently than you expect, while another property may have drainage considerations that aren't obvious when you drive through the neighborhood. The City of Naperville points property owners to FEMA's flood maps and the DuPage County Parcel Viewer for local floodplain information. Those are good places to start with the actual address.

What the Flood Map Does - and Doesn't - Tell You

If a home is in a Special Flood Hazard Area, flood insurance may be required when the mortgage is through a federally regulated or insured lender. That's something I want a buyer to know well before closing.

But I wouldn't stop with the map.

For a Naperville home, I also want to understand the basement, sump-pump system, grading and drainage around the house. I want to review what the seller has disclosed about previous water intrusion, flooding or drainage repairs and make sure anything unusual gets a closer look during the inspection. Naperville itself provides homeowner information on sump pumps, street flooding and local drainage problems. Water around a home isn't always just a question of how close you are to the river. What I Want Checked Before Closing For a home you're seriously considering, I would make sure we have covered the basics. Review the flood information for the actual address. Read the seller's disclosures for any history of water or drainage problems. Pay attention to the basement and sump-pump system. Look at how the lot slopes and where water appears to move during a heavy rain. I also want the lender's flood-insurance requirement confirmed early enough that it doesn't become a last-minute closing issue. If flood insurance will be required - or if you simply want to know what it would cost - get pricing for the property itself. Don't assume the price based on what a neighbor pays or what someone paid several years ago.

Knowing When to Bring in a Specialist

One advantage of experience in real estate is knowing when something deserves another set of eyes. I know Naperville and the local housing market very well. When a transaction gets into a specialty such as flood insurance, I'd rather put my client in front of someone who deals with it every day than make assumptions outside my lane. If the flood map is unclear, the lender requires coverage, or you want to understand the cost and options for a particular home, that's a good time to have a flood insurance specialist review it. The Better Flood Insurance Illinois guide is one resource I would use for that. It gives buyers a place to learn more about Illinois flood insurance and look into options for a particular property.

NFIP Isn't Necessarily the Only Option

Buyers are sometimes surprised to learn that flood insurance may involve more than one option. The National Flood Insurance Program, or NFIP, is one source of coverage. Private flood insurance may also be available depending on the property. If coverage is going to be part of the cost of owning the home, I think it makes sense to understand what is available before closing rather than simply accepting the first number you receive.

My Naperville Pre-Closing Flood Checklist

Before closing on a Naperville home, I would make sure these items have been covered: Check the actual address. Review the FEMA and DuPage County flood information rather than judging the property only by its proximity to the DuPage River. Review the disclosures. Look for previous flooding, basement water, drainage problems or related repairs. Look closely at the basement. Understand the sump pump and anything the inspection identifies concerning moisture or water. Look at the drainage. Pay attention to the slope of the lot and how water moves away from the house. Confirm the lender requirement. Find out early whether flood insurance will be required. Get a property-specific insurance price. Know what coverage would cost before closing. Compare the options. If coverage is needed or wanted, look at the NFIP and available private options. Get another opinion when needed. If something isn't clear, bring in the appropriate specialist before you own the home.

Do the Homework Before You Own the House

I recently wrote about what we're seeing in the Naperville late-summer real estate market. Market conditions help us make decisions about timing, pricing and how to approach an offer. Once you've found the house, the focus changes. Now we need to understand the property itself and make sure the important items have been checked. Flood maps, drainage, basements and insurance are part of that due diligence. They don't need to make the process more complicated. They just need to be addressed at the right time. I'd rather identify something while we still have time to understand it than have a buyer discover it after closing.

I would lilke to thank Robert Murphy for supplying information on this topic. If you have any specific questions please post below of feel free to contact Robert or myself:

Robert Murphy Flood Nerd P: 866 990-7482 betterflood.com