Flood Areas & LMI

We are looking at buying property in Ballina.

Our research suggests the area is 'flood prone' but we have been told by the Council and the trusted land sales agent that the estate has been designed to a 1:100 flood event (which doesnt mean much these days etc) and that the floor level is above the flood level.

The Bank (WBC) tell us that they offer cover for flood as part of their building insurance cover and have provided a quote (which was surprisingly less than what I thought it would be).

Does anybody know what the LMI will say about it being in a flood prone area? The Bank seems OK with it and I have asked them specifically about the LMI.
 
Best thing to do is to get an upfront valuation before you buy. That way you know exactly what will happen. LMI adds another spanner in the works so val is key
 
It is possible to get LMI cover even on places that have a valuer rated 5/5 flood risk.............ie there was water through the house in recent times

A lot depends on the property. the borrower, and a few side issues all of which need to line up.

ta
rolf
 
We are looking at buying property in Ballina.

Our research suggests the area is 'flood prone' but we have been told by the Council and the trusted land sales agent that the estate has been designed to a 1:100 flood event (which doesnt mean much these days etc) and that the floor level is above the flood level.

The Bank (WBC) tell us that they offer cover for flood as part of their building insurance cover and have provided a quote (which was surprisingly less than what I thought it would be).

Does anybody know what the LMI will say about it being in a flood prone area? The Bank seems OK with it and I have asked them specifically about the LMI.


With 1/100 you will be fine with LMI even at 95% LVR. As per Genworth and QBE policy.

However if the valuation comes back with any another negatives like environmental issues, market stability issues etc, then that's a different story.
 
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