Can I Cancel a Flood Policy If the Map Changes?
A flood insurance policy holder may be able to cancel their policy if the Federal Emergency Management Agency (FEMA) alters its flood insurance rate maps so that a property moves into a low to moderate risk flood zone. Beginning in 1968 with the passage of the National Flood Insurance Act, the U.S. federal government moved from a policy of disaster response to one of risk management, requiring those living or running a business in the most flood prone areas to purchase flood insurance.
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Flood Insurance Rate Maps
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FEMA and the National Flood Insurance Program (NFIP) work together to determine flood-prone areas and regularly update this data. FEMA conducts flood hazard analysis to determine the probability of flooding in an area, then maps the data for easy communication. The NFIP then uses these maps to set flood insurance premiums. FEMA makes all of these maps freely available on its Map Service Center web page.
Flood Zones
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Properties are categorized into flood zones. Those in a low to moderate risk area are mapped as "B," "C" and "X," while those in a high or coastal high risk area are mapped as "A" and "V."
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Required Insurance Zones
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Properties in high and coastal high risk zones are federally required to carry flood insurance. These areas experience a 1 percent chance of flooding annually and a 26 percent chance during the life of a 30-year mortgage. For all other zones, flood insurance is optional.
Map Changes
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FEMA regularly updates its maps to reflect the latest flood analysis. When this moves a property from a low to a moderate to high or coastal high risk zone, the property owner must obtain flood insurance. Likewise, when it moves high risk property into a low to moderate risk zone, it releases the property owner from the federal requirement of purchasing flood insurance. However, the property owner's mortgage company can continue to require flood insurance for the life of the mortgage.
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