Definition
Geographic areas designated by FEMA as having higher flood risk where flood insurance is required. Flood zones significantly impact insurance costs and property values.
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The National Flood Insurance Program uses sophisticated flood maps to identify areas at risk from 100-year and 500-year floods. Properties in high-risk flood zones typically require mandatory flood insurance through the National Flood Insurance Program, which adds to the cost of homeownership. It's critical to check flood zone status before purchasing, as it can significantly impact insurance costs and resale value.
Pro Tip
Always check FEMA flood maps before buying. Don't rely solely on whether the property has flooded in the past.
Example
The property was located in FEMA flood zone AE, which required flood insurance costing approximately $1,200 annually.