Flood Insurance is a common concern in Charleston, SC, and it's important for residents and property owners to understand the different flood zones in the area. In this post, we'll take a closer look at four of the more common flood zones in Charleston: AE, V, B, and X.
Flood Zone AE is the most common high risk zone. This zone includes areas that have a 1% chance of flooding each year, also known as a 100-year flood plain. Properties located in Flood Zone AE are required to have flood insurance when a mortgage is involved. These proeprties may also be subject to specific building codes and regulations to minimize flood damage.
Flood Zone V is the designation for coastal areas with an increased chance of flooding. The V in Flood Zone V, as well as Flood Zone VE , stands for “velocity wave action.” These wind-driven waves can cause significant damage, putting area homes in danger... especially of they are not designed to withstand these waves. Plus, storm waves can move with such force that they continue inland beyond the point of initial impact. The chance of a flood in Zone V is 1% annually, sometimes referred to as the 100-year flood, and 26% over the course of a 30-year mortgage. Flood zone V is considerably more expensive to insure than Flood Zone AE.
Flood Zone B is considered to be a moderate-to-low risk zone for flooding. This zone includes areas that have a 0.2% chance of flooding each year, also known as a 500-year flood plain. Properties located in Flood Zone B are not required to have flood insurance, but it is highly recommended.
Flood Zone X is considered to be the lowest risk zone for flooding. This zone is outside of the 100-year and 500-year flood plains. Properties located in Flood Zone X are not required to have flood insurance, but it is still recommended, as flooding can still occur outside of these zones.
It's worth noting that although Flood insurance is not required in Flood Zones X & B, nearly 20% of flood insurance claims come from these 2 zones. For this reason, you may want to consider getting flood insurance in these zones. Home in X & C zones cost considerably less to insure.
It's also worth mentioning that when buying a property, flood insurance is not in force for 30 days on a cash transaction where financing is NOT involved. On these occasions, we often assist our clients in transferring the existing flood policy from the Seller so there is no a lapse in coverage.
On rare occasions when an ambiguity exists as to the exact location of the Flood Zone for a house or building, property owners can request a A Letter of Map Amendment (LOMA) is an official amendment, by letter, to an effective National Flood Insurance Program (NFIP) map. A LOMA establishes a property's location in relation to the Special Flood Hazard Area (SFHA). This can often reduce the cost of flood insurance on a property without affecting the coverage.
Understanding the different flood zones in Charleston, SC is essential for protecting your property and yourself from potential flood damage. It is important to know your flood zone and the requirements for flood insurance to ensure you have the right coverage and protection in place.
When clients ask me ask me if they should get flood insurance, I answer with the following. "Take our your SC Drivers License... if it says Charleston, Mt. Pleasant, Isle of Palms, Sullivans Island or Daniel Island... I recommend you get flood insurance!"
