Sarah Dolce, Senior Account Manager, explains how a flood zone will affect a flood insurance premium.
If you own a home or property in a community that participates in the National Flood Insurance Program, you are eligible for flood insurance. Nearly 19,000 communities participate, so its likely that your community does. A number of factors are considered when determining your flood insurance premium, including the amount and type of coverage being purchased, the location of the risk, the design and age of the structure and the flood zone you are located in.
A Flood Insurance Rate Map, know as a FIRM, is a map created by the NFIP for floodplain management and insurance purposes. They show areas of high, moderate and low flood risk. High-risk zones, also known as Special Flood Hazard Areas begin with the letters “A” or “V.” Moderate- to low-risk zones, known as Non-Special Flood Hazard Areas begin with the letters “X”, “B” or “C.” Though maps are constantly being updated, it will give you a reliable indication of what flood zone you’re in. Federal Emergency Management Agency (FEMA) uses the maps to help determine what you should pay for flood insurance. The higher your flood risk, the higher the premium.