This really is a tough question to answer. Unfortunately, this question can be asked when flooding has already occurred which could be too late if you do not have this type of insurance. Flood Insurance is not included in your homeowner’s insurance. You have to pay for this separately!  None of us, especially in this current economy, want to spend money for something they don’t need. So how do you know if you need flood insurance for your home?

Although FEMA conducts a Flood Insurance Study to determine flood hazard areas with Flood Insurance Rate Maps (FIRMs) in your community, everyone is at risk! There can be many causes to flooding: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall. Unless you are at the very top of a high mountain, you and your home are at risk! We have seen proof of this in Georgia within the Atlanta and Metro Atlanta areas in a few days just from heavy rainfall. Our local rivers are at highest levels in years. Our roads and highways are flooded. Our schools and homes are under water. Flood risk is not based on your history of no floods. It is based on a number of factors including: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development. The Flood Insurance Rate Maps (FIRMs) are created to show the locations of high-risk, moderate-to-low risk, and undetermined-risk areas and to help you understand your risks in your local community. Your flood insurance rate will be determined by these maps.

Here is a brief explanation of how the areas are categorized in the FIRMs.

High-risk areas (Special Flood Hazard Area or SFHA)

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High-risk areas have at least a 1% annual chance of flooding, which equates to a 26% chance of flooding over the life of a 30-year mortgage. All homeowners in these areas with mortgages from federally regulated or insured lenders are required to buy flood insurance. They are shown on the flood maps as zones labeled with the letters A or V.

Moderate-to-low risk areas (Non-Special Flood Hazard Area or NSFHA)

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In moderate-to-low risk areas, the risk of being flooded is reduced, but not completely removed. These areas are outside the 1% annual flood-risk floodplain areas, so flood insurance isn’t required, but it is recommended for all property owners and renters. They are shown on flood maps as zones labeled with the letters B, C or X (or a shaded X).

Undetermined-Risk Areas

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No flood-hazard analysis has been conducted in these areas, but a flood risk still exists. Flood insurance rates reflect the uncertainty of the flood risk. These areas are labeled with the letter D on the flood maps.

While it may be cheaper in the short run to go without flood insurance, you may be risking serious damage and cost to your home in the future. For more information on flood insurance for you, visit the National Flood Insurance Program (NFIP).