FEMA and Flood Zones

The Federal Emergency Management Agency has developed a federal flood program to assist government subsidized flood insurance. The federal government has actually mapped the entire country and highlighted areas that were prone to flooding. These areas are called Special Flood Hazard Zones.

There is a federal law that requires a flood determination to be performed on each real estate mortgage of 5,000 dollars or more. These flood determinations are done by private companies. The determinations are inexpensive, mostly computer generated, and are frequently done by out of state firms with little knowledge of the local area. The determination is done without visiting the site. These determinations are based solely upon the flood map and not on elevation, terrain or topography.

Many people are surprised to learn that their property is in a flood zone. Areas that FEMA has determined to have a chance of flooding in a “100 year flood” are shown as shaded areas on the flood maps. Federal law mandates flood insurance for any mortgage on property within this zone.

Headaches With the System

The federal government actually did a reasonably good job mapping the entire country. It is amazing how accurate the majority of these flood maps are.  Unfortunately, the maps aren’t perfect.

We frequently find areas, however, that show up in the special flood hazard zone areas on these maps that are actually in no danger of flooding.  Areas on high slope sides, hilltops, and plateaus for example.  Imagine how furious a potential homebuyer would be when told that he/she has to buy flood insurance for their mountain top retreat!

O.K., I agree I’m in the Flood Zone, but how do I get insured?

Most homeowner’s insurance companies can provide flood insurance, or refer an insurance carrier. The insurance cost is based on a hazard rate. The homeowner may need to provide the insurance company with a Flood Elevation Certificate, which is a form that lists the height (above sea level) of the level to which floodwaters would rise. In addition, the height (above sea level) of the ground upon which the house exists. Other elevations are provided so that the insurance company can determine the risk of flooding. Livingston-Hughes Surveyors can provide this service.

No way. I’m not in the flood zone, these people are crazy!

This is a common complaint. FEMA’s maps are not perfect. In fact, sometimes the maps are just plain wrong. We recommend the following steps in cases where the flood determination is in question:

1.  You can request a review of your determination through your mortgage company. We suggest providing as much information as possible along with this request.  This may include a “Building Location for Flood Determination”.

Livingston-Hughes can provide this service. This is a sketch of your property showing the house location (information that may not have previously been available to the determination company).

2. If step one does not change the situation, we recommend a Flood Elevation Certificate, which is a form that lists the height (above sea level) of the level to which flood waters would rise. In addition, the height (above sea level) of the ground upon which the house rests. Other elevations are provided so that the insurance company can determine the risk of flooding. Livingston-Hughes can provide this service for around $300 . This service may provide evidence that the house and surrounding areas are above the flood zone.

3. Once the Flood Elevation Certificate is completed, it is decision time.

           a. The Flood Elevation Certificate indicates the house and surrounding area is elevated above the Flood Zone. You may be able to avoid flood insurance by applying for a Letter of Map Amendment. This process may take 60 days or more. If time is of the essence and the flood elevation certificate results are encouraging, we recommend buying flood insurance. The insurance premiums are refundable for a period of one year if a Letter of Map Amendment is granted by FEMA.

           b. The Flood Elevation Certificate indicates the house and/or surrounding area is at or below the Flood Zone. We recommend flood insurance, it will be required by the lender. The cost is not usually prohibitive.

4. Apply for a Letter of Map Amendment using the Flood Elevation Certificate and other materials. Livingston-Hughes can coach you through this process and provide referrals to experts.

Call or e-mail us to help with flood zone issues. We can help!