Flood Zones & How They Affect Insurance
The Federal Emergency Management Agency (FEMA) groups communities at higher risk of flooding into one of several flood zones.
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Flood zones are areas drawn on a map that help show the likelihood that land in that zone will flood.
If your home is in a flood zone and you have a federally backed mortgage , your insurance company will require flood insurance on top of a homeowners policy.
Some companies also require flood insurance for homes in areas at moderate risk.
FEMA once used flood zones to calculate flood insurance rates. But a process introduced in 2023 is now used to measure risk and set costs. This process is based on information about your house specifically instead of just where your home is located.
Which flood zones require insurance?
If your home is in a zone beginning with the letter A or V, you must buy flood insurance.
Flood zone | Required | Annual flood risk | Flood source |
|---|---|---|---|
| V, VE, V1–V30 | Yes | 1% | Coastal areas, associated with storm waves and other hazards |
| AO | Yes | 1% | Rivers or streams |
| AH | Yes | 1% | Ponds and other sources of shallow flooding |
| A, AE, AR, A1–30, A99 | Yes | 1% | Undefined |
| D | No | Uncertain | Undetermined potential hazard |
| C and X (unshaded) | No | <0.2% | Undefined lesser hazards |
| B and X (shaded) | No | 0.2%–1% | Undefined lesser hazards |
Flood zones show how likely a flood is in a particular area. Even in the most flood-prone communities, the probability of a flood is low — usually 0.2% to 1.0% in any given year.
Keep in mind that these percentages are for your area as a whole, not your individual home. Your house's flood risk depends on the severity of the flood, your home's location in the zone and the level of flood protection you've added to your house.
A 1% annual risk of flooding adds up to a 26% chance of flooding at least once during a 30-year mortgage.
The National Flood Insurance Program (NFIP), a division of FEMA, will sell a policy to any homeowner living in a flood zone, regardless of risk.
You can also buy a flood policy from a private company, but private insurance companies may not offer coverage in the highest-risk areas.
How do I know if I need flood insurance?
You can use FEMA's Flood Map Service Center to look up your property's flood zone. Be patient, because the map can take time to load. Find your address on the map. Your flood zone will be displayed close by.
How are flood insurance rates calculated?
Although having a home in a flood zone starting with an A or V means you must buy flood insurance, the zones are no longer used to calculate rates.
In 2023, FEMA and the NFIP introduced a new way of calculating flood insurance premiums called Risk Rating 2.0. The method uses property-specific data instead of the area's flood zone to determine rates. This means your premium will be based on characteristics of your actual home, not just where it's located.
Risk Rating 2.0 uses 24 factors to determine your flood insurance rate, including:
- The state where your home is located
- The distance to the nearest body of water (e.g.,, river, ocean or lake)
- The elevation of your property and your house's structure
- Your home's foundation type
- The height of the first floor
These factors are also rated by the likelihood of events like inland flooding, a storm surge, a tsunami or coastal erosion on your property.
These details are added to a base rate to protect your home's structure and its contents. The base rate is for $1,000 of coverage, which you can multiply by the amount of protection you need.
California | South Carolina | |
|---|---|---|
| Yards to river | 40 | 120 |
| Elevation above river | 1 | 4.6 |
| Miles to ocean | 1.5 | 4 |
| First floor elevation | 0.5 | 5.5 |
| Building coverage rate | $4.42 | $2.67 |
| Contents coverage rate | $6.87 | $3.80 |
| Annual rate | $2,365 | $1,507 |
Building and contents rates are per $1,000 of coverage. Annual rate is based on $250,000 of building coverage and $100,000 of contents coverage
Say a home in South Carolina is 120 yards from a river and four miles from the ocean. The property is 4.6 feet above river level, and the first floor is 5.5 feet off the ground. Based on these factors, and more, an NFIP policy would cost $2.67 per $1,000 of coverage for the building and $3.80 per $1,000 of coverage for the contents of your home. For the maximum amount of coverage, that works out to $1,507 per year.
Compare this to a home in California that's located 40 yards from a river and 1.5 miles from the ocean. The property is one foot above river level, and the first floor is half a foot above the ground. A policy for this home would cost $4.42 per $1,000 of coverage for the building and $6.87 per $1,000 of coverage for the contents. That works out to $2,365 per year.
What does your home's flood factor mean?
Your flood factor is based on the likelihood that your land will flood over a 30-year period and one inch of water will reach your house. Homes are rated 1 to 10. A higher score means a flood is more likely, and odds are, the flood will be deeper than average.
While it's a smart idea to know and understand your home's flood factor, these details aren't used by the NFIP to set your flood insurance rates.
Frequently asked questions
What does flood factor 9/10 mean?
A flood factor of 9/10 means that your home has a 99% chance of experiencing one inch or more of flooding over a 30-year period. While it's important to know your home's flood factor, it isn't used by the NFIP to determine flood insurance rates.
Does flood zone AE require flood insurance?
Yes, if you're located in a flood zone that begins with an A or V, you'll need flood insurance.
Do I need flood insurance in zone X?
For homeowners in flood zone X, the law doesn't require you to purchase a flood policy, but your mortgage company might. You may also want to consider flood insurance if your house is near a body of water or your area has extreme weather events, such as major rainstorms or hurricanes.
Are all flood insurance rates the same?
No, all flood insurance rates are not the same. Your rate is based on a number of factors, including the distance between your property and a body of water and the elevation of your first floor. This ensures the rate you're paying reflects your home's risk of flooding.
Methodology
Flood insurance premium examples were provided by FEMA.
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