What is a Flood Certification?

When you plan purchase a home, it’s important to know many details before proceeding. One of those details is what flood zone the property is in. A flood zone describes that land area in terms of its risk of flooding. FEMA (Federal Emergency Management Agency) flood maps are examined using the address or geographic coordinates of the property.

Flood zones can affect you financially in two ways. The first is the cost of your homeowners insurance. If you live in an area that is at high risk for flooding, you can expect to pay an additional cost for flood insurance. Second, a lender may not finance you if the home you’re buying is at risk. To protect its interests, a lender will order a flood certification before they disburse funds on a home loan. Using the location on the FEMA flood map, the flood certification provider certifies what, if any, flood zone in which the property is located.

See the “Flood Zone Designations” section in Resources for Home Buyers post for more information.