What does Special Flood Hazard Areas mean? Read on to discover the definition & meaning of the term Special Flood Hazard Areas - to help you better understand the language used in insurance policies.
Special Flood Hazard Areas
A special flood hazard area (SFHA) is a specifically defined area that has a 1 percent chance of being inundated by flood waters in any given year (thus the creation of the term "100-year flood plain"). Flood waters have an equal chance of submerging these areas every year for five straight years, or not for 200 years; there is simply a 1 percent statistical possibility every year. Homes located in special flood hazard areas have a 26 percent chance of suffering flood damage over the normal 30-year life of a loan according to FEMA. There are two broad classifications of special flood hazard areas: 1) "A" zones, and 2) "V" zones.
We hope the you have a better understanding of the meaning of Special Flood Hazard Areas.