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Posted: 12.30.2015

Now we will learn about the various flood zone classifications.

You need to know that there are basically THREE FLOOD ZONES (X, AE, and VE zones) and that every property falls into one of these zones.  The flood zones are determined by the risk of flooding.  The lowest risk zone is called a X zone.  Homes in a X zone are not considered to be in a Special Flood Hazard Area, therefore, lenders typically won't require you to carry flood insurance.  This does not mean the house will never flood.  In fact, FEMA says that 20% of all flood claims arise from homes outside of the high-risk flood areas.

Homes located in flood zones AE and VE are considered to be in a Special Flood Hazard Area so lenders will require flood insurance.  The AE zone is a moderate-to-high risk zone.  The average flood insurance premiums for most of these homes in Southeastern NC are $500-$800 per year.  For this reason, we like to tell our clients that an AE zone stands for "Additional Expense."  The high-risk zone is known as a VE zone.  You'll typically find these homes sitting by the ocean or beside large bodies of water.  The average premiums for the VE zone ranges from $1,500 to $6,000.  Premiums can be higher than that depending on the construction and value of the building.  With premiums that high, we tell our clients that a VE zone stands for "Very Expensive." 

In Part 3 of our series, we will discuss how your flood zone premium is calculated.

Stay tuned...

Contact Swanson Realty Today: 910-454-4450 | 4701-2 Southport-Supply Road, Southport, NC 28461