After the Storm: The Pros and Cons of Rebuilding, Selling, or Elevating Your Flood Damaged Home. (Part 1)
Hurricanes Debby, Milton, and Helene left the Tampa/St. Petersburg areas with more than 200,000 residential insurance claims. Homeowners are faced with a tough decision: what to do next? Do you sell? Rebuild? Elevate your existing home? Build a new elevated home? Each option comes with its own challenges, costs, and benefits.
Option 1: Sell Your Flood-Damaged Home or Lot
If rebuilding feels overwhelming (or just too expensive), selling your home might be the best way to move on. Many Florida homeowners have sold their flooded properties “as-is” to investors or taken advantage of government buyout programs.
Pros
Fast Sale, Less Hassle
- Selling “as-is” means you don’t have to invest time or money into repairs.
- Investors and developers often buy lots quickly, reducing the stress of a prolonged selling process.
No Repair Costs
- Flood damage can be costly to fix, and some homes require major renovations to meet new building codes.
- By selling as-is, you avoid the expenses of clearing debris, repairing structural damage, or bringing the home up to code.
Avoid Rebuilding
- Rebuilding after a hurricane can be expensive, time-consuming, and subject to strict regulations (see option #2 Cons section).
- The FEMA 50% Rule may require you to elevate the home if repair costs exceed 50% of its pre-damage value, adding even more expenses (see option #2 for pros and cons of elevating an existing home).
Forget About Future Flood Risks
- If your home is in a high-risk flood zone, selling allows you to move to a safer location without worrying about future hurricane damage or rising flood insurance costs.
Don’t Forget FEMA or Government Options
- Government or FEMA buyout programs may offer fair market value for properties in flood-prone areas, providing financial relief.
Your Property May Be a Prime Investment
- If your lot is eligible for elevated construction, developers may see it as an opportunity, making the lot valuable despite the flood damage.
Cons
Lower Sale Price
- Selling for land value alone means you won’t recover any equity in the house itself.
- Investors and developers typically offer lower prices than the traditional real estate market.
New Legal Requirements
- As of October 1, 2024, Florida law requires you to disclose all flood damage, insurance claims, and federal assistance received. Failure to comply could result in penalties or legal complications.
There Could Be Hidden Costs
- Depending on local regulations, you may need to clear debris or mitigate hazards before listing the lot.
- If the home is condemned or poses a safety risk, demolition may be required before selling, which could be costly.
It May Take Some Time
- While cash buyers may close quickly, selling a home with flood damage on the open market or through a buyout program can take months to process.
Location, Location, Location
- You may be at the mercy of zoning regulations and demand for redevelopment. If the area has a history of frequent flooding or complicated building codes, the value may be significantly reduced.
Option 2: Rebuild Your Home
If you love your location and want to stay, rebuilding might be your first thought. But before jumping into reconstruction, there are a few key things to consider.
Pros
Building Back Better
- New construction must meet updated FEMA floodplain regulations, making your home safer during hurricanes.
- Rebuilding allows you to design your dream home with hurricane-resistant materials like impact windows, reinforced roofing, and flood-resistant walls.
- You can add smart home technology, energy-efficient upgrades, and better drainage solutions for improved safety and convenience.
Insurance & Financial Assistance
- If you have flood insurance, it may cover a significant portion of rebuilding costs.
- Programs like FEMA grants or low-interest loans can help offset the cost of rebuilding or elevating your home.
Property Appreciation
- Newer, elevated homes in high-risk flood zones often increase in value because they are more resilient and desirable to buyers.
- Waterfront properties, especially in areas like St. Petersburg, remain highly sought after despite the risk of flooding.
Strengthening Your Community
- After the natural disasters experienced by the Tampa / St. Petersburg area, staying and rebuilding is key to the long-term recovery of your neighborhood.
- As more homeowners invest in mitigation strategies, the area becomes better prepared for future storms.
Cons
It Can Be Pricey
- Rebuilding can be expensive. Even with an insurance payout, it may not cover the complete cost as new construction in the Tampa / St. Pete area can be $300 – $600 per square foot.
It May Take Some Time
- Permitting, inspections, and construction can take years due to:
- Contractor shortages after a major hurricane.
- Material delays caused by supply chain disruptions.
- Strict permitting requirements in flood zones.
- You may need temporary housing for months (or even years) while your home is rebuilt.
Insurance Can Be Tricky
- Flood insurance premiums may skyrocket. Finding affordable insurance can be difficult since some companies are pulling out of high-risk areas like Florida, making it harder to find coverage.
- Private insurers may charge higher rates or impose strict exclusions on storm-related claims.
The Emotional Strain
- Rebuilding can be stressful, requiring homeowners to navigate FEMA regulations, insurance claims, and contractor negotiations.
- The emotional toll of losing belongings and memories in a flood can make rebuilding a painful and exhausting process.
- Rebuilding may add to the trauma.
Flood Fatigue
- Future risks still exist. Even with mitigation measures, Tampa/St. Pete remains vulnerable to hurricanes, storm surges, and rising sea levels.
- After repeated damage, homeowners may question whether rebuilding is worth it.
If you have a house or lot damaged by recent disasters in the Tampa / St. Petersburgh Area, contact us at Winway Homes, and we can discuss your options. Winway Homes is one of the select new construction home builders certified to build elevated homes.
Next Part Two: Elevate Your Existing Home, Building a New Elevated Home
