Flood Zones & How They Affect Insurance
Flood zones show how likely it is for a flood to reach your home.
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If your home is in a high-risk or moderate-risk flood zone and you have a mortgage, your mortgage company will most likely require flood insurance on top of a homeowners policy. The Federal Emergency Management Agency, also known as FEMA, decides how risky each area is to flooding and sets the flood zone.
But what you pay for flood insurance coverage is based on your exact home: its elevation, distance from water sources and any flood protections.
Which flood zones require insurance?
If your home is in a zone beginning with the letter A or V, most of the time you must buy flood insurance.
Flood zone | Required | Flood source |
|---|---|---|
| V, VE, V1-V30 | Yes | Coastal areas, associated with storm waves and other hazards |
| AO, AH, A, AE, AR, A1-30, A99 | Yes | Rivers, streams, ponds and other sources |
| D | No | Undetermined potential hazard |
| B, C and X | No | Undefined lesser hazards |
Even in places that flood the most, the probability of a flood is low: usually 0.2% to 1.0% in any given year.
The National Flood Insurance Program (NFIP), a part of FEMA, will sell a policy to any homeowner living in a flood zone, regardless of risk. You can get NFIP coverage through regular insurance companies or FEMA's own group, NFIP Direct. The National Flood Insurance Program covers 4.7 million people.
On average, you can get the lowest rates with National Flood Insurance Program coverage. But you can also buy a flood policy from a private company. Private insurance companies tend to not offer coverage in high-risk areas. But they may have cheaper rates for low-risk homes and offer more coverage than the caps on National Flood Insurance Program coverage.
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 introduced a new way of calculating flood insurance rates called Risk Rating 2.0. The method uses property-specific data instead of the area's flood zone to determine rates. This means how much you pay will be based on your actual home, not only on its general location.
Risk Rating 2.0 uses 24 factors to determine your flood insurance rate, including:
- The distance to the nearest body of water (e.g., river, ocean or lake)
- Flood frequency (how likely flooding is in any one year)
- Flood type (e.g., river overflow, storm surge or heavy rainfall)
- Your home’s elevation
- The amount of coverage you want and the cost to rebuild
- The state where your home is located
The average cost of flood insurance from the National Flood Insurance Program is $59 per month or $703 per year. Your exact rate depends on your house.
California | South Carolina | |
|---|---|---|
| Yards to river | 40 | 120 |
| Feet above river level | 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 |
| Monthly rate | $197 | $126 |
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.
What does flood zone A mean?
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 flood 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.
Does renters insurance cover flooding?
No, renters insurance doesn’t cover flood damage if it was caused by weather, such as a river overflowing or a hurricane. As a renter, you can buy flood insurance to protect your things. But if your place was flooded because a pipe burst, your things are often covered by your typical renters insurance policy.
Methodology
Flood insurance premium examples were provided by FEMA.
Other sources include the National Flood Insurance Program, FloodSmart.gov and First Street Foundation.
About the Author
Former Senior Writer
Jenn Jones is a former Senior Writer at LendingTree where she covered auto, home, renters and motorcycle insurance topics.
Previously an editor for USA TODAY Blueprint and a finance manager at World Car dealerships, she has more than a decade of experience in the world of personal finance and a deep interest in sharing knowledge that empowers others. She’s also served as a freelance translator, copy editor, writer and researcher. She graduated from the University of Virginia with a B.S. in commerce and a B.A. in Chinese language and literature.
How insurance helped Jenn
Jenn first came to appreciate pet insurance when annual checkups for her cat and dog totaled more than $700.
Expertise
- Auto insurance
- Renters insurance
- Condo insurance
- Home insurance
Referenced by
- USA TODAY
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- F&I Magazine
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Education
- BS, Commerce, University of Virginia
- BA, Chinese Language and Literature, University of Virginia
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