Is Your Minneapolis Duplex In A Flood Zone?
Is Your Minneapolis Duplex in a Flood Zone? Here’s What You Need to Know
The other day, some Minneapolis duplex buyers asked me how a flood risk rating of 7 out of 10 would affect owning a specific property.
That’s considered a high flood risk—and it got us all thinking.
Naturally, I asked where they found this information. It wasn’t on the MLS. Their answer? Zillow.
Where Does Zillow Get Flood Risk Data?
Zillow partners with First Street Foundation, a company that compiles and analyzes historical data related to flooding, wildfires, wind, air quality, and extreme heat. They layer this with climate change projections to forecast future environmental risks for individual properties.
Traditionally, flood risk has been evaluated by FEMA through FEMA flood zones, which are based on historical data. However, even insurance companies are beginning to incorporate data from First Street and similar sources when assessing risk.
Why Flood Risk Matters for Your Minneapolis Duplex
When we visited the property, the issue became clear. The duplex sat at the low point of a three-block alley. Each end of the alley sloped upward, making the property feel like it was sitting in a bowl—exactly where water collects during heavy rain or flooding.
And with recent flooding events in states like Texas and New Mexico, it’s not just a theoretical concern. Flooding is top of mind for many real estate investors and homeowners alike.
Flood Insurance Options for Duplex Owners
If your Minneapolis duplex is in a flood-prone area, here are your main options for coverage:
The NFIP, managed by FEMA, is offered through licensed insurance agents. It’s the most accessible option but comes with some limitations:
- Maximum building coverage: $250,000
- Personal contents coverage: $100,000
- No coverage for loss of rental income or temporary living expenses
- Slower claims processing
- Private Flood Insurance
Private flood insurance may cost more, but it typically offers:
- Higher coverage limits
- Potential coverage for rental income loss
- Faster, more flexible claims process
- The ability to bundle with existing policies
Ask your insurance agent if private flood insurance is available for your property.
What About Tenants?
It’s important to remember: a duplex owner’s policy does not cover tenants’ belongings. If your tenants live on the ground floor or in a basement unit, it’s worth encouraging them to get renter’s flood insurance, especially if your property is in a high-risk zone.
Final Thoughts
When it comes to owning a duplex in Minneapolis—or anywhere else—understanding your property’s flood risk is just as important as knowing the rental income or cap rate. And the worst time to find out you need flood insurance?
When your duplex is already filling with water.
For personalized advice, always talk to a trusted insurance agent. They can help you navigate both public and private coverage and protect your investment before the next big storm hits.