Many properties in this area are in a floodplain of some sort. The distinction between different floodplains is expressed as how often the probability of a storm delivering enough rain to flood a particular area is likely to occur. Theoretically, a 100-year floodplain should only be affected by a storm so large that the probable chance of a flood occurring is once every 100 years. Unfortunately, there have been a few years in recent memory where we had more than one 100 year storm in the same season!  Properties financed in a High Risk Flood Area (Special Flood Hazard Areas, or SFHAs) require annual flood insurance.  This generally includes areas with flood zone designations other than B, C, or X.  FEMA defines flood zones on Flood Insurance Rate Maps (FIRMs), which evaluate levels of flood risk.  Zones B, C, and X are considered Low to Moderate Risk Zones.  As a rule, these zones have a 1% or less annual chance of flooding.  High Risk Zones, which have a higher statistical chance of different types of flooding, include zones A, AE, AH, AO, AR, A99, V, VE, and D.

LOW-TO-MODERATE RISK ZONES (Non-Special Flood Hazard Areas)
Zones B, C, and X
• Areas outside the 1% annual flood risk floodplain
• Areas of 1% annual shallow flooding risk where average depths are less than 1 foot
• Areas of 1% annual stream flooding risk where the contributing drainage area is less than 1 square mile
• Areas protected by levees from the 1% annual flood risk. Insurance purchase is not required in these zones.

HIGH-RISK ZONES (Special Flood Hazard Areas)
Zone A
Areas with a 1% annual flood risk and a 26% risk of flooding over the life of a 30-year mortgage. Because detailed analyses are not performed for such areas, no depths or base flood elevations are shown within these zones.

Zones AE and A1-A30
Areas subject to a 1% or greater annual chance of flooding in any given year. Base flood elevations are shown as derived from detailed analyses. (Zone AE is used on new and revised maps in place of Zones A1-A30).

Zone AH
Areas subject to a 1% or greater annual chance of shallow flooding in any given year. Flooding is usually in the form of ponding, with the average depths between one and three feet. Base flood elevations are shown as derived from detailed analyses.

Zone AO
River or stream flood hazard areas, and areas with a 1% or greater annual shallow flooding risk, with flooding usually in the form of sheet flow with average depths between one and three feet. Average flood depths are shown as derived from detailed analyses.

Zone AR
Areas subject to a 1% or greater annual chance of flooding in any given year, which results from a temporary increased flood risk due to the building or restoration of a flood control system (such as a levee or a dam).

Zone A99
Areas subject to a 1% or greater annual chance of flooding in any given year, but which ultimately will be protected by completion of a flood protection system under construction. No base flood elevations or flood depths are shown.

Zone V
Coastal areas with a 1% or greater flood risk and an additional hazard associated with storm waves. Because no detailed analyses have been performed of these areas, no base flood elevations are shown.

Zones VE and V1-30
Coastal areas with a 1% or greater flood risk and an additional hazard associated with storm waves. Base flood elevations are shown as derived from detailed analyses. (Zone AE is used on new and revised maps in place of Zones A1-A30).

UNDETERMINED-RISK ZONES
Zone D
In areas of possible but undetermined flood risk, flood insurance rates reflect the uncertainty of the flood risk.

FLOOD INSURANCE
Flood insurance protects you from the financial devastation caused by floods. Even a few inches of water can bring thousands of dollars in repair and restoration costs. Most homeowners insurance does not cover floods. You need flood insurance.

Flood insurance, like earthquake insurance, is “single peril” insurance, sold separately from homeowners insurance. Flood insurance protects against losses to buildings and their contents, not the land surrounding them. The coverage applies whether the flooding results from heavy or prolonged rains, coastal storm surge, snow melt, blocked storm drainage systems, levee dam failure, or other causes. To be considered a flood, the waters must cover at least two acres or affect at least two properties.

Flood insurance is available both within and outside of floodplains. Your property’s flood risk is shown on flood hazard maps. Different types of policies are available depending on your flood risk.

If you live in a high-risk area, you will need a Standard Policy. Most mortgage lenders will require that you have such a policy before they will approve your loan.

Outside of high-risk areas, flood insurance is also available, usually at lower cost. A Preferred Risk Policy covers both a home and its contents, with premiums as low as $119 per year. While you aren’t federally required to have flood insurance in a low-to-moderate risk area, that does not mean you won’t ever need it. Large floods often extend beyond the boundaries of high-risk areas and smaller floods occur outside high-risk areas as well. In fact, a quarter of all flood insurance claims come from low-to-moderate risk areas.

Flood insurance is sold and serviced by private insurers, and backed by the federal government. More than 85 companies sell flood insurance. Often the same insurance agent who wrote your homeowners insurance policy can help you obtain flood insurance. Flood insurance costs the same wherever you purchase it, because the rates are set by the National Flood Insurance Program.

Flood insurance covers both homes and businesses. With residential coverage you can get up to $250,000 of insurance to protect your home and up to $100,000 to protect its contents. If you are located in (or moving into) a high-risk area, federally regulated or insured lenders will require you to have flood insurance for the amount remaining on your mortgage, or $250,000, whichever is lower. With commercial coverage, you can get up to $500,000 of insurance to protect your building and up to $500,000 to protect its contents.

If you have additional questions regarding flood zones and/or flood insurance, please feel free to contact Tony Calvis at 480-905-0200 or 480-220-9900.  The Calvis Wyant team is always happy to provide information to industry members as well as potential customers.  We invite you to visit our website at calviswyant.com where you will find other topics of interest and can sign up to receive our monthly newsletters.