Selling a flood- or storm-damaged house in Delaware
Delaware’s environmental agency calls flooding a year-round threat, and along the bay and the Sussex coast, storm surge and tidal flooding add to it. After water or wind gets into a house, owners face a run of decisions: whether to claim, whether to rebuild, whether the local floodplain rules will even let them rebuild the way it was, and what they have to tell a buyer. This page walks through each, with the Delaware and federal sources behind it.
The figure that matters: 50 percentIf your house sits in a FEMA high-risk flood zone and the local floodplain administrator decides the damage equals half or more of the building’s pre-damage market value, it is “substantially damaged.” Rebuilding then has to meet current floodplain rules, which can mean elevating the whole house. Ask about that determination before you sign a repair contract or accept an offer.
First, find out what kind of flood risk you actually have
Everything else depends on this. The federal Flood Insurance Rate Maps sort land into low, moderate and high flood risk, and they decide where a mortgage lender must require flood insurance. DNREC, the state’s environmental agency, works with FEMA to keep those maps accurate.
- FEMA’s Flood Map Service Center. Type the address to see the official flood zone and the map panel that covers it.
- The Delaware Flood Planning Tool. DNREC’s interactive map for researching a property’s flood risk, built for owners as well as agents, surveyors and planners.
- Your county or town floodplain office. In Sussex, the county adopted its current flood maps in January 2015 and its Environmental and Flood Plain Manager takes questions at (302) 855-7884.
Water does not respect map lines, though. The state’s own disclosure form asks about drainage problems and standing water that lingers more than 48 hours after rain, whatever the zone. A house outside the high-risk area can still take water in a heavy storm.
Coastal Sussex and the bay shore
DNREC singles out coastal areas as the places most exposed to storm surge and tidal flooding during coastal storms. In practice that means the Atlantic beach towns and the communities around Sussex County’s inland bays, and on the Kent side, bay-front places such as Little Creek, where DNREC describes recurring tidal flooding on Main Street and Lowe Street from the Little River and the Delaware Bay.
Owners there face a narrower market after damage. Lenders make borrowers buying in a high-risk zone carry flood insurance, so the cost of that policy is built into what they can offer. If the house is low and older, a buyer may also be pricing in elevation or a rebuild. With a damaged house, the buyer is taking on both the repair and that future premium at once.
For the Sussex picture town by town, see Lewes, Millsboro and Sussex County.
Insurance: which policy pays for what
Rising water
A standard homeowner policy does not cover flooding, as DNREC reminds Delaware owners. Flood losses are paid by a separate flood policy, most often through FEMA’s National Flood Insurance Program. If you carry one and the house is substantially damaged in a high-risk zone, Increased Cost of Compliance coverage can pay up to $30,000 toward elevating, relocating or demolishing it to meet floodplain rules.
Wind, trees and roof leaks
Storm damage from wind, falling trees or rain driven through a damaged roof is usually a homeowner policy claim, subject to its deductible. Whether water came from wind-driven rain or rising flood can be disputed, so photograph everything before cleanup and keep every receipt.
If a claim stalls or you believe it was wrongly denied, the Delaware Department of Insurance’s Consumer Services Division handles complaints at 1-800-282-8611; NFIP questions go to 1-800-427-4661. And if nobody will be living there while this gets sorted out, tell your carrier: vacancy clauses commonly start limiting coverage after 30 to 60 days without occupants.
What you must tell a buyer
Delaware’s Buyer Property Protection Act reaches every home of up to four units: its seller lists known material defects in writing, on the Real Estate Commission’s report, before the buyer makes an offer. On flooding, the current form is specific. It asks whether any part of the property is in a flood zone or wetlands, whether drainage or flood problems affect it, whether you carry flood insurance and with whom, whether water stands in the yard more than 48 hours after rain, whether the house has ever been damaged by fire, smoke, wind or flood, and whether there has been non-plumbing water leakage or basement water. It also sends buyers to FEMA’s flood maps.
“Ever” means ever, including damage that was repaired years ago. Fully repaired damage disclosed with the paperwork reassures a buyer; damage they discover on their own, or from a neighbor, sinks deals and can lead to claims after settlement. An as-is sale still leaves the disclosure duty in place, and a sale to us is no exception.
Claim and repair, or sell as-is
| Route | What happens | Fits when | Watch out for |
|---|---|---|---|
| Claim, repair, stay | The insurer pays, contractors rebuild, you move back in. | Coverage is solid and you want to keep the house. | Deductibles, depreciation, contractor backlogs after a big storm, and the 50 percent rule. |
| Claim, repair, then list | You restore the house and sell it at full market value, disclosing the history. | The payout covers most of the rebuild and the house is affordable to carry. | Months of carrying costs, and buyers who discount any flood history. |
| List it damaged | An agent markets it as a project. | Damage is moderate and there is investor demand in your area. | Financed buyers rarely can close on a house with active water damage. |
| Sell to a cash buyer like us | We buy in its current condition; repairs and any floodplain compliance become our problem. | The repair bill is large, coverage is thin, or you do not want to rebuild. | Our price reflects the damage and the risk; settle the claim question before you sign. |
This is general information. Your adjuster, your floodplain administrator and a Delaware attorney can answer for your policy and parcel.
The most common mistake is deciding the house’s fate before the insurance picture is clear. Find out what the policy will pay, who it will pay (ask whether your lender will be named on the check), and whether a substantial damage determination is coming. With those three answers, a repair estimate and an as-is offer can be compared honestly. If the claim will cover a full rebuild and you want to stay, stay. We fit when the gap between what insurance pays and what the work costs is bigger than you care to absorb.
Keep this file together
- Photos and video of the damage. Taken before cleanup, with dates.
- Both policies. Homeowner and flood, with claim numbers, adjuster names and every letter.
- Your flood zone. A printout from FEMA’s map center or the DNREC tool, and any elevation certificate you have.
- Repair estimates and receipts. Including emergency drying or mold work already done.
- Any letter from the floodplain or permit office. Especially one mentioning substantial damage.
How a sale to us works after a flood or storm
- We look at the damage as it is, mid-cleanup is fine, and ask what the insurer has said so far.
- You receive a cash number, usually within 24 hours, showing the repair estimate we used.
- You complete the disclosure report with what you know; we do not ask you to fix anything first.
- A Delaware settlement attorney pays off the mortgage and liens, and you choose the settlement date.
Water damage often brings mold and structural repairs with it; see house needs major repairs. If you have already moved out, read selling a vacant house for the insurance gap on empty homes.
Free help firstDNREC’s floodplain management program (302-608-5500) and your county or town floodplain administrator can explain your zone and the rebuilding rules. For a number on the house as it stands, call us at (856) 226-4289.
Related situations
- House needs major repairsMold, framing and electrical work that often follows water damage.
- Vacant houseMoved out while the house dries out? Mind the vacancy clause.
- Code violations and open permitsRebuild permits left open, and notices on damaged buildings.
- DownsizingWhen a storm is the push to move somewhere smaller and drier.
Questions about selling a flood- or storm-damaged house in Delaware
Can I sell a flood-damaged house in Delaware without repairing it?
Yes. You can sell it as-is to a cash buyer or an investor, or list it as a project, but you must still disclose the damage you know about on the Delaware seller’s disclosure report. Financed buyers usually cannot close on a house with active water damage.
Do Delaware sellers have to disclose past flooding?
Yes. The Delaware Real Estate Commission’s disclosure report asks whether the property is in a flood zone, whether it has drainage or flood problems, whether the house has ever been damaged by flood, wind, fire or smoke, and whether there has been water leakage, so past flooding belongs on it even if it was repaired.
How do I find out if my Delaware house is in a flood zone?
Search the address in FEMA’s Flood Map Service Center, which shows the official flood zone, or on DNREC’s Delaware Flood Planning Tool, an interactive state map for researching a property’s flood risk. Your county or town floodplain administrator can confirm it.
Does homeowners insurance cover flood damage in Delaware?
No. A standard homeowners policy excludes flooding, as DNREC points out; flood losses are covered by a separate flood policy, usually through FEMA’s National Flood Insurance Program. Wind and storm damage to the roof or from fallen trees is usually a homeowners claim.
What does substantially damaged mean?
It means the local floodplain administrator has determined that the damage equals 50 percent or more of the building’s market value before the damage. In a high-risk flood zone, a substantially damaged house must be brought up to current floodplain standards when it is rebuilt, which can mean elevating it.
What is Increased Cost of Compliance coverage?
It is part of an NFIP flood policy that pays up to $30,000 to help bring a substantially or repetitively damaged building in a high-risk flood zone into compliance with floodplain rules, through elevation, relocation or demolition. Call your agent or the NFIP at 1-800-427-4661.
Is it better to file my claim before I sell?
Usually, yes. Knowing what the policy will pay, and to whom, lets you compare a repair-and-sell plan against an as-is offer honestly. Talk to your adjuster and, if the house is mortgaged, ask how the lender will be involved in the payment.
Who helps if my insurer denies a storm claim?
The Delaware Department of Insurance’s Consumer Services Division handles complaints about insurers and claims at 1-800-282-8611. NFIP flood claims can also be raised with the program at 1-800-427-4661.
When were Sussex County’s flood maps last updated?
Sussex County adopted its current Flood Insurance Rate Maps by ordinance in January 2015, and FEMA affirmed them in March 2015, according to the county. Questions go to the county’s Environmental and Flood Plain Manager at (302) 855-7884.
Will you buy a house in a flood zone with storm damage?
Yes. We buy houses with water, wind and mold damage in their current condition, including in high-risk flood zones, and we take on the repairs and any floodplain compliance. You still complete the disclosure report with what you know.