But the truth is the policy can be limiting, starting with what the NFIP counts as a flood. Many assume that because the National Flood Insurance Program (NFIP) is backed by a federal agency, its insurance is comprehensive. It can cover damage from burst pipes in your house but not damage from storm surges or rising water. Remember, homeowners insurance doesn’t cover water damage from floods. Even if flood insurance isn’t required by your lender, if you live in Zone A, it’s smart to have flood insurance. Keep in mind that it only takes an inch of standing water to do thousands of dollars worth of damage to your home and your belongings. You’ll want to make sure you protect your home and what’s inside. While a 1% chance of a flood in any given year doesn’t sound like a big risk, lenders know that major storms and hurricanes are causing more and more flooding each year. If you have a federally backed mortgage, like an FHA, USDA, or VA loan, you’re required to have flood insurance if your home is in a Special Flood Hazard Area.

Are homes in Flood Zone A required to have flood insurance?

Generally, the higher the BFE, the more likely the area is to face severe flooding, and the higher the premium.Įven without parcel by parcel mapping, this zone is considered to be a volatile area because it’s near lakes, rivers, streams, or other large bodies of water. BFE is also used to calculate flood insurance premiums. This is an important benchmark when building new structures with flood-proofing features. Base flood elevation is the height to which floodwaters are expected to rise during a 100-year flood. Zone A doesn’t have a determined base flood elevation (BFE), which can make new construction in these areas tricky. All zones in Zone A have the same base flood insurance rates, but premiums vary based on the home’s unique qualities and elevation. Zone A is further broken down into other flood zones that are named to designate how the area might be flooded: Zone AE, AH, AO, and A99. Over the course of a 30-year mortgage, there is a 26% chance of flooding. In other words, homes in these areas face a 1% risk of serious flooding each year. SFHAs have a 1% annual chance of flooding (this is also called a 100-year flood or base flood). Because of its low elevation and proximity to water, Flood Zone A is a Special Flood Hazard Area (SFHA) as designated by FEMA’s flood maps. Flood Zone A refers to low-lying areas close to lakes, ponds and other large bodies of water. Some areas are more prone to flooding than other areas, and that’s true for places designated as Zone A.

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