Flood insurance policyholders are encouraged to periodically review their coverage and understand the process that makes them eligible for the National Flood Insurance Program.
Flood Insurance Rate Maps—used to determine a community’s risk—may be updated and result in changes to coverage and cost. Understanding FIRMs can help NFIP policyholders save on premiums and select the best possible coverage. Risk-reduction measures—such as elevation—are also taken into consideration. Here are the answers to some frequently asked questions on FIRMs and NFIP:
What are FIRMs?
- Flood maps, known officially as Flood Insurance Rate Maps, show areas of high- and moderate-to-low flood risk in a series of zones.
- FIRMs are used to set minimum building ordinances and floodplains.
- Insurance agents use FIRMs to determine flood insurance requirements.
- FEMA uses FIRMs to help determine the amount property owners and renters should pay for flood insurance.
How can FIRMs help protect homes and properties?
- It is important to update FIRMs due to changes in flood risks and drainage patterns.
- New FIRMs or changes to maps can take more than a year to become finalized or adopted by local governments and communities.
- Questions and concerns can be addressed by local floodplain managers before FIRMs are adopted.
What are Special Flood Hazard Areas and Non-Special Flood Hazard Areas?
- Local governments pass and enforce regulations for designated Special Flood Hazard Areas. SFHA are high-risk areas.
- These zones begin with the letters ‘A’ or ‘V’ and are usually located lower than the Base Flood Elevation.
- Zone V is considered the most hazardous.
- This includes areas along coasts subject to inundation by the 1-percent-annual-chance flood event with additional hazards associated with storm-induced waves.
- Undetermined or unstudied flood hazard areas begin with the letter ‘D.’
- These areas include land located near swamps, lakes or creeks.
- The risk of flooding is reduced in moderate-to-low risk areas, also called Non-Special Flood Hazard Areas.
- Moderate-to-low risk zones on FIRMs begin with the letters ‘B’, ‘C’ or ‘X.’
- These areas are usually protected with levees.
How can FIRMs help protect homes and properties?
- Flood insurance is recommended for all property owners and renters, even those who live in moderate-to-low risk areas.
- Insurance premiums vary depending on the type of policy purchased, the property’s risk of flooding and the elevation of the structure.
- Property owners who carry a mortgage from a federally regulated or insured lender are required by law to have a flood policy.
- Changes to FIRMs can increase or reduce flood premiums.
- Structures added to a high-risk zone following map changes may be eligible for a rate reduction for the first 12 months.
- Some policyholders may be eligible under a grandfather clause.
- Homes and businesses built in compliance with FIRMs at the time of construction can request to keep the original zone.
- Property or homeowners may be eligible for FEMA-funded programs or flood-proofing enhancements, like the Increased Cost of Compliance coverage.
- ICC assists with elevating, relocating or demolishing homes or businesses.
Can NFIP provide reduced rates?
- Properties located in moderate-to-low risk areas may qualify for lower-cost Preferred Risk Policy rates.
- To qualify for flood insurance, the home or business must be in a community that has joined the NFIP and agreed to enforce floodplain management standards.
- To find out if your community participates in NFIP, call 800-638-6620.
- All Louisiana properties are at a risk of flooding.
- Nearly 39 percent of the homes and businesses damaged by the August 2016 floods were located in moderate-and-low risk areas.
Where Can I Learn More?
- Additional flood mapping information is available at www.fema.gov/national-flood-insurance-program-flood-hazard-mapping.
- Contact local floodplain administrators for information on local requirements. Maps can also be viewed at https://msc.fema.gov/portal/.
