Flood Insurance Rate Maps (FIRMs) are commonly referred to as “flood maps”. They show a community’s risk of flooding and are used by FEMA, community officials and lenders for different requirements. Lenders use flood maps to determine which properties must carry flood insurance. Community officials use them to enforce building codes and floodplain management ordinances. Flood maps help people and communities understand their risk.
Knowing that flood hazards change over time, flood maps are updated periodically to reflect the most updated flood risk for the community.
What is a flood zone?
A flood zone is a defined geographic area that represents the probability and impact of flooding on that area. It is used to determine insurance requirements.
There are five flood zones and on the map they are labeled by letters:
Low-Risk Zone: B & X (shaded)
Moderate-Risk Zone: C & X (unshaded)
High-Risk Zone: All A Zones
Coastal High-Risk: All V Zones
Undetermined Risk: D
Flood maps are updated to reflect flood risks in the area. One potential update is an area changing to a Special Flood Hazard Area (SFHA). This is why it’s important to review your community’s flood map every so often to see if there are changes affecting your property.
What are Special Flood Hazard Areas (SFHAs)?
SFHAs are hazard areas that have at least a 1-in-4 chance of flooding during a 30-year mortgage. On flood maps, SFHAs are labeled as zones starting with the letters A or V. Flood insurance is required for properties within SFHAs.
My property is now in a SFHA, do I have to purchase flood insurance?
If your property is newly mapped within an SFHA, your lender will require you to purchase flood insurance. You may be eligible to receive the Newly Mapped discount if you purchase or renew a flood insurance policy within the first 12 months after the map update.
How do I know if my community participates in the NFIP?
To participate in the NFIP and be eligible to purchase flood insurance, communities must adopt and enforce ordinances that meet or exceed FEMA’s minimum floodplain management regulations and they must adopt the effective flood map of the participating community.
To find out if your community participates in the NFIP visit the community status book page.
Am I eligible for a discount?
A property may be eligible for the Newly Mapped discount if it was previously designated in a Zone B, C, or X on the previous flood map and newly mapped into an SFHA, or was previously designated in a Zone D, A99, or AR and newly mapped into a different SFHA zone.
If eligible for the Newly Mapped discount, the insurer must retain a copy of the lender notification in the underwriting file.
The Newly Mapped discount reduces the cost of flood insurance coverage. There are two types of flood insurance coverage: building coverage and contents coverage. Building coverage pays for damages to a structure such as a home or business. Contents coverage pays for damage to personal property inside a structure. The more coverage a person buys, the higher the premium they pay for their insurance. The Newly Mapped discount is a 70% premium discount applied to the first $35,000 of building coverage and to the first $10,000 of contents purchased. This means you'll pay much less than the standard rate for the initial amounts of coverage.
Does the discount expire?
The Newly Mapped discount is phased out annually, the premium will increase by no more than 18% per year (in accordance with statutory rate caps) until it reaches the full rate based on the property’s risk.
If you have questions about your specific property, please reach out to your agent. If you need help finding one, click here.
What documents do I need?
You must obtain one or more of the following to document previous and current flood zones:
Special Flood Hazard Determination Form (SFHDF)
Copy of the most recent effective flood map showing the exact location and flood zone of the building.
Letter signed by a local community official indicating the property address and flood zone of the building.
Elevation Certificate signed and dated by a surveyor, an engineer, an architect or a local community official indicating the exact location and flood zone of the building.
Letter of Map Amendment (LOMA)
Letter of Map Revision (LOMR).
It’s important to note that the NFIP may require additional documentation if the building is close to the zone boundary.
How can I get more information?
If you need more information, you can download a copy of our NFIP Map Changes and Flood Insurance: What Property Owners Need to Know Brochure or contact your agent. If you need help locating an insurance company near you, use our locator Flood Insurance Providers.
Even if you are in a zone where flood insurance is not mandatory, it is a good idea to purchase a policy. Anywhere it can rain it can flood.