What should I know about buying in a flood zone?

Flood zones are designated by FEMA based on the risk of flooding. Properties in designated Special Flood Hazard Areas (SFHAs), also known as 100-year flood zones, are required to carry flood insurance if they have a federally backed mortgage. Flood insurance costs vary based on the flood zone, the property's elevation, and the building's characteristics. In higher-risk zones, premiums can be $1,000 to $3,000 or more per year. Flood insurance is separate from homeowners insurance and covers damage from rising water, which standard policies do not cover. Even if a property is not in a designated flood zone, flood insurance may be worth considering. Heavy rain and flash flooding can affect areas outside mapped flood zones. Ask the seller for the property's flood history. Has the home ever flooded? What mitigation measures have been taken? Check the elevation certificate, which shows the home's elevation relative to the base flood elevation. Homes built above the base flood elevation have lower flood insurance costs.