Frequently Asked Questions

Flood Insurance

I have lived here forever and have never been flooded. Why do I need flood insurance?

The flood hazards shown on National Flood Insurance Program (NFIP) maps are based on the best information available at the time the maps were prepared. In many areas, hydraulic and hydrologic studies were conducted to reflect the long-term projection of flood risk. Because of the infrequent occurrence of flood events and the relatively short history of the NFIP, Special Flood Hazard Areas (SFHAs) are not based only on past flooding occurrences. The fact that a flood hasn't occurred within memory doesn't mean one won't happen soon.

The 100-year flood is a relatively rare event (1-percent chance in any given year), but structures located in the floodplain have a significant chance (26 percent) of suffering flood damage during the term of a 30-year mortgage. For these reasons, flood insurance is required as a condition of receiving Federal or federally backed financing.

Back To Top

We had a big flood that was called the "100-year flood." We weren't damaged. Why do I need flood insurance?

The term "100-year flood" is often incorrectly used and can be misleading. It does not mean that only one flood of that size will occur every 100 years. The term is a statement of probability that scientists and engineers use to describe how one flood compares to others that are likely to occur. Today, we use the phrase "1-percent annual chance flood." What it means is that there is a 1-percent chance of a flood of that size happening in any year. Over a 100-year period, it has a 63.5-percent chance of occurring. Even more surprising is that over a 30-year period (typical mortgage period), the 1-percent annual chance flood has a 26-percent chance of occurring. This means a home in the mapped flood hazard area is five times more likely to be damaged by flood than to have a major fire!

To answer your question about why you need flood insurance, you would need to look very carefully at what caused the flood and how high the water near your home rose. Because rainfall amounts are different when a storm moves across an area, a "100-year flood" may occur in some places but not others. There are many factors that can add to flooding, including debris in the waterway, small road culverts and bridges, frozen or saturated ground, and others.

If your area had a major storm and your home was not flooded, you may want to check with your community's engineering or planning office. If other areas didn't flood, it may mean that the Flood Insurance Rate Maps should be revised. You may also want to check to see if your home is eligible for a Letter of Map Amendment (LOMA) which FEMA uses when homeowners submit Elevation Certificates showing that their homes are out of the mapped floodplain. With a LOMA, your lender may choose to not require flood insurance.

Back To Top

What elevation is used when rating a structure for a flood insurance policy?

The difference between the lowest floor elevation (including basement) of your structure and the 1-percent annual chance flood elevation is used to determine the insurance rating.

Note: Buildings and structures are insurable. The National Flood Insurance Program does not insure land.

Back To Top

If I disagree with my lender's determination that I am in a floodplain, what can I do?

In some cases, a lender determines that a property is in the Special Flood Hazard Area (SFHA), but the property owner disagrees. The SFHA is also known as the 100-year floodplain. It is more precisely defined as the floodplain associated with a flood that has a 1-percent annual chance of being equaled or exceeded in any given year. Therefore the SFHA is not a flood event that happens once in a hundred years, rather a flood event that has a 1-percent chance of occurring every year. Property owners in this situation have a couple of options. They may apply for a Letter of Map Amendment (LOMA), or a Letter of Map Revision - based on Fill (LOMR-F) (if fill placement is the basis of the request). In addition, property owners may apply for a Letter of Determination Review (LODR).

Forms for these purposes can be found on our web site at www.fema.gov/fhm/frm_main.shtm. The following paragraphs describe first the LOMA or LOMR-F process, followed by the LODR process.

Upon receiving a completed MT-EZ (for LOMAs) or MT-1 (for LOMR-Fs) application, FEMA reviews property-specific information (including surveyed elevation data, typically the elevation of the lowest adjacent grade of the structure in question, provided by a licensed land surveyor Note: the homeowner may be required to hire a land surveyor to perform this elevation survey, if this data is not readily available), and makes a final flood zone determination for the property. Once an application and all necessary data are received, the determination is normally issued within 30 - 60 days. If the LOMA or LOMR-F removes the SFHA designation from the property, it can then be presented to the lender as proof that there is no Federal flood insurance requirement for the property. However, even though a LOMA or LOMR-F may waive the Federal requirement for flood insurance, a lender retains the prerogative to require flood insurance. No fee is charged for the review of a LOMA; however, there is a $425 review fee for a LOMR-F.

In addition, property owners may apply for a Letter of Determination Review (LODR). A LODR is a review of your lender's determination. In other words, the LODR is a process where FEMA reviews the same information your lender used to determine that your structure was located in a SFHA. It is important to note that the LODR process does not consider the elevation of the structure or property above the flood level. Rather, it considers only the location of the structure relative to the special flood hazard area boundary shown on the Flood Insurance Rate Map. Thus, you should be aware that your lender does not consider the elevation of your property or structure when determining if your property or structure is in or out of the SFHA. FEMA reviews this information and issues its finding of whether the structure is located in the SFHA according to the current NFIP map. The request for such a letter must be jointly requested by the property owner and the lender no later than 45 days following the date the lender notified the borrower that the property is in a special flood hazard area. While this determination cannot consider the elevation of your structure or property, it can be useful if you feel the lender's interpretation of the map is incorrect.

To summarize then, there are obviously some important distinctions between the two processes (LODR vs LOMA / LOMR-F).

  1. The determinations are based on different data.
    The LODR process does not consider the (vertical) elevation of the structure or property above the flood level. Rather, it considers only the horizontal location of the structure relative to the special flood hazard area boundary shown on the Flood Insurance Rate Map. The LOMA/LOMR-F process uses actual survey elevation data to determine if the property or structure is at or above the elevation of the SFHA .

  2. There are different fees involved.
    Process Fee
    LOMA FREE
    LODR $ 80
    LOMR-F $425

  3. The determinations result in different actions.
    A LODR does not result in an amendment or revision to the National Flood Insurance Program map. It is only our finding regarding the structure's location with respect to a delineated special flood hazard area.

    A LOMA or LOMR-F actually removes the SFHA designation from the property by letter.

Back To Top

How and when do I get a refund if I do cancel my flood insurance?

If you were required to obtain flood insurance as a condition of a loan and you were later determined to be removed from the Special Flood Hazard Area (SFHA) by a Letter of Map Change (LOMC) (includes Letter of Map Amendment, Letter of Map Revision - based on Fill or Letter of Map Revision), you may request a refund. However, the lender is not required to waive your flood insurance requirement; the lender may decide that flood insurance coverage is still required as a condition of the loan.

To receive a refund, submit the LOMC to the lender and ask that the lender waive the insurance requirement. Present the written waiver from the lender, along with a copy of the LOMC, to the insurance agent that sold you the policy and request a refund. Refunds are not available if a claim has been made or is pending against the policy.

Back To Top

Additional FAQ Topics

Digital Flood Data and Mapping
General Information
Flood Insurance
Flood Map Policy and Program
Flood Map Process
Flood Revision
Flood Study Data
Frequently Used Terms
Q3 Flood Data

Back To Top

Need additional help?

FEMA Map Assistance Center
Call 1-877-FEMA-MAP
Email a Map Specialist

Back To Top

Last Modified: Friday, 25-Aug-2006 09:25:00 EDT