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WASHINGTON COUNTY -- In a normally dry, desert climate, homeowners were caught off guard by the massive floods this week. So what happens to your neighborhood's value if homes are lost in the river?
Since 2005, real estate agents have had a tough time selling the properties along the river beds, and with good reason. Some of those who lost their homes lost all of their investment as well.
As the water rose in Southern Utah, the cameras came out and deja vu set in. Real Estate agent Jeremy Larkin posted a video on YouTube, recalling the floods of 2005 and the properties no longer standing.
"This empty spot where this gravel is, a home fell into the river in '05," he said.
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The storm system that has deluged areas of Utah's Dixie as well as neighboring states is finally headed east, bringing much needed relief to beleaguered residents.Six months ago he sold that property right along the river. He says many prospective buyers wouldn't go near it for fear of its proximity to the river. Many, though, were told another storm like the one that claimed the house a few doors down wouldn't happen again in their lifetime.
"It was the 100 year flood plan; now it's the five year flood plan," he said.
The homeowners who live in the area have lost 5-10 percent of their property value, along with the decrease all of the area has seen related to the recession. Of course, that's just for the residents who still have homes.
What's the value in a house you no longer have?
"If you're going to move in a flood plain, I'm not saying you shouldn't live in a flood plain, but you should know your options and you need to get involved with a policy in advance. Because, ‘hey, this isn't going to happen for another 100 years,' happened five years later," Larkin said.
Even if you have flood insurance, which most of the homeowners who lost their homes did not, it only covers about 50-80 percent of your home's value.
"There are some people who probably got left high and dry in '05," Larkin said.
He said if you're going to live in a flood plain, you really should have flood insurance, whether you think it's only going to flood every 100 years or not.
E-mail: jstagg@ksl.com
