Mortgage Glossary
Flood Zone
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A flood zone is a FEMA-mapped area indicating a property's flood risk, which affects insurance requirements and cost.
What Flood Zone means
High-risk zones, labeled with letters like A or V, require flood insurance for federally backed loans. Lower-risk zones do not, though coverage is still wise in Florida. Zone designations can change when FEMA updates maps.
Florida example
A buyer comparing two Cape Coral homes chose the one in a lower-risk flood zone, avoiding a several-thousand-dollar annual flood insurance premium.
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