FEMA Flood Insurance Disclosure Notice
National Flood Insurance Program and Special Flood Hazard Area disclosure. Provided pursuant to federal and California law to inform buyers about flood determinations and insurance requirements.
What Is a Special Flood Hazard Area?
A Special Flood Hazard Area (SFHA) is an area FEMA identifies as having a 1% or greater chance of flooding in any year — the "100-year floodplain." SFHAs appear on FEMA's Flood Insurance Rate Maps (FIRMs) as zones beginning with "A" or "V." A home within an SFHA has roughly a 26% chance of flooding over a 30-year mortgage.
FEMA Flood Zone Designations
| Zone | Risk Level | Description |
|---|---|---|
| A, AE, A1–A30, AH, AO | High Risk | SFHA — 1% annual chance of flooding. Insurance required by federally backed lenders. |
| V, VE, V1–V30 | High Risk — Coastal | Coastal flood zone with wave action. Flood insurance required. |
| B, X (shaded) | Moderate Risk | Between the 100- and 500-year flood levels. Insurance recommended. |
| C, X (unshaded) | Minimal Risk | Outside the 500-year floodplain. Insurance available, not required. |
| D | Undetermined | Flood hazard not yet determined. Insurance available. |
Mandatory Flood Insurance
The Flood Disaster Protection Act of 1973 (42 U.S.C. §4001 et seq.) requires owners with federally backed mortgages on buildings in an SFHA to purchase and maintain flood insurance for the life of the loan. Standard homeowner's policies do not cover flood damage. Premiums vary by zone, structure elevation, and FEMA's Risk Rating 2.0 methodology.
California Disclosure Requirements
- Civil Code §1103 requires disclosure of whether the property is in a Special Flood Hazard Area on the Natural Hazard Disclosure Statement, based on current FIRMs.
- Government Code §§8589.3–8589.4 require disclosure of areas of potential flooding due to dam failure (dam inundation zones), a separate hazard from FEMA flood zones.
- Federal law (42 U.S.C. §5154a) requires notifying the buyer if the property has received federal disaster assistance conditioned on maintaining flood insurance.
How to Obtain Flood Insurance
Flood insurance is available through the National Flood Insurance Program (NFIP) via any licensed insurance agent, and through private insurers. Learn more at floodsmart.gov or call FEMA at 1-800-427-4661.
Bottom Line
If the property sits in a Special Flood Hazard Area, flood insurance is likely mandatory and must be disclosed. Buyers should confirm the current flood zone and obtain premium quotes before closing — standard homeowner's coverage will not pay for flood damage.