Flood Insurance coverage
Special Flood Hazard Area – Purchasing an insurance coverage for your home against many of the unforeseeable risks is important. However, normal insurance covers are often dealt with differently compared to those associated with natural disasters. Floods are common disasters that hit homes hard and leads to extensive damages. When considering to take an insurance coverage covering your home from floods, it is vital to assess the probability of the occurrence of the floods as a starting point. It does not make any sense to buy an insurance cover against floods in an area that is far away from water bodies or one that has never experienced floods before.
100 Year Flood
In the United States, the Federal Emergency Management Agency has labeled some areas with a high flood related hazards dubbed the Special Flood Hazard Area. These areas are designated on the maps, and people who live there are required to buy flood insurance. These dangerous areas are divided into different zones according to the risk of experiencing floods. A Special Flood Hazard area is one where there is a one percent chance of experiencing a flood, something called the 100-year flood.
The risk zones are further divided into several minor zones based on studies and records regarding those areas all under the category A zones. The less risky zones, called the Zone B or X have a 0.2 percent chance of experiencing floods. Lastly, the relatively safer areas, called the Zone C are not within the Special Flood Hazard Area and have a very low probability of experiencing floods.
The insurance rates for the zone A subzones are determined using mathematical approximations. All the necessary rules surrounding the insurance purchases still stand for all the subzones. Let us take a look at the different zones and see how they are categorized based on the risk of floods.
- Zones AE and A1-A30.
In these zones, the Base Flood Elevations obtained from the in-depth analyses of the hydraulic features of these zones are specified at different intervals of the zone.
- Zone AH.
Corresponds to the areas susceptible to shallow flooding with a consistent water eleva
tion level where the exact levels range from one to three feet.
- Zone AO.
Refers to the areas vulnerable to shallow flooding specifically the sloping terrains where the average water levels range from one to three feet. Alluvial flood risks are specified to fall under this zone.
- Zone AR.
These zones are the ones that describe areas that are protected from the risks by flood control structures. FEMA recognizes such areas if the control system can be restored by a relevant agency working arm in arm with a local sponsor. The insurance rate for this area does not exceed a set threshold if FEMA has approved the control structure.
- Zone A99.
This refers to zones where there are Federal flood control systems that have been constructed and deemed to meet the statutory standards. No depths are indicated within this zone.
- Zone D.
This refers to areas where there is a possibility of an undetermined flood hazard. No flood analysis studies are conducted in these regions, and the mandatory flood insurance purchase requirements are not applicable here. However, coverage is available, and the rates are proportionate with the uncertainty of the hazard.
- Zone V.
Used to refer to areas that have other risks resulting from storm waves. Depths obtained from the hydraulic analyses done are all approximates, and the mandatory insurance buying rules do not stand.
- Zone VE.
These areas are related to the Zone V with the only difference being the thorough hydraulic analyses done in these regions. The depths obtained from the studies are indicated, and compulsory insurance buying regulations apply.
The above zones are the ones that fall under the Special Flood Hazard Areas. The remaining ones, Zone B, C, and X do not fall under the SFHAs and thus no in depth hydraulic analysis that show depths are done in this area.
When buying flood insurance for the designated areas, it is important to look into a couple of matters and avoid getting the whole thing wrong. There are numerous flood insurance agencies out there, and some non reputable companies may not provide the necessary coverage your require.
First, concerning the rates, be aware that the government body determines all of them. The rates cut across all the companies and do not fall for firms trying to lure you using lower rates. They are all similar regardless of where you purchase your NFIP insurance from.
Special Flood Hazard Area
When buying coverage, ensure you deal with the reputable players in the industry. Flood insurance is not like the other minor car accident and personal injury covers that involve relatively little compensation sums. Look for a reputable and seasoned flood insurance company that will write accurate policies for you and compensate you in a timely fashion in case the hazard happens.
One standard feature of the flood insurance policies is that they take thirty days to become active. Always plan your schedules well and ensure you are always covered, especially if you are living in a Special Flood Hazard Area. Such areas are hazardous, and you should avoid being caught up in a flood while waiting for your insurance to become active.
The policies surrounding the SFHAs are very clear, and people who live there should buy flood insurance. Do not be caught unaware by a flood and its accompanying damages by ensuring you are always covered.
Other Great Contributing Resources:
Top 7 First Time Home Buyer Mistakes You Need To Avoid – Kyle Hiscock
The Non negotiable list for first time home Buyers – Lynn Pineda
Getting a VA Loan – Kevin Vitali
The Best of Google+ Real Estate August 2017– Bill Gassett
7 Steps to follow when Buying a Home – Frederick Franks