MassiveCert aims to make every American aware of their own personal flood risk so they can make informed decisions. Through a partnership with First Street Foundation, we released FEMA flood zone date for 142 million properties nationwide. 

This article is written to aid property owners regarding their flood risk. Floodplain Managers, flood insurance professionals, surveyors, etc. may note that this information is high-level and not every variable is covered. Even so, it is hoped this information helps those not directly involved in the industry understand the basic terms and how they relate to flood risk and flood insurance rates.

Of course, the best way to keep a home from flooding is to build it well outside of a Special Flood Hazard Area (SFHA). But we know, about 25% of flood claims come from properties not in these high-risk zones. Further, the risk of flooding is obviously vastly different between properties considered to be in low-risk areas when one is a few inches above the Base Flood Elevation (BFE) and the other is many feet above that imaginary line (the elevation at which a hydrology study predicts 1% chance of flooding in any given year). What’s more, many individuals have to consider properties in SFHAs. Cities like New Orleans, Houston, and Charleston to name a few, don’t give home buyers and businesses many choices other than high risk areas.

Most lenders will contact a Flood Zone Determination company to obtain a Standard Flood Hazard Determination (SFHD) as part of their closing process and in most cases a property insurance agent will make the same request from the same or a different Flood Zone Determination company. With two or more SFHDs being produced for a single location, disagreements in results can arise. These discrepancies can delay closing or the placement of a flood insurance policy. 

This is a follow-up on our last blog about the conversations we have with property owners wanting to cancel their flood insurance policy.  It’s a complex decision that affects the risk we accept and how we mitigate that risk.  If you like facts and data, here’s some information that might help make a decision that’s right for you.

Homeowner’s insurance does not cover losses from flood disasters.  This is the primary reason it’s a big deal.  You need a separate flood insurance policy to be protected from flood disasters.