Flood Insurance Information
Flood insurance is an important first step in protecting your financial investment. Please find flood insurance information and requirements for Osceola County, Florida.
Learn More About the Preferred Risk Policy
Visit the National Flood Insurance Program Consumer Website
Flood Insurance
Flood insurance is vital for safeguarding your financial investment. Homes in high-risk areas have a 3x higher chance of flooding than fire over a 30-year loan period.
As per the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, flood insurance is mandatory for all structures in high-risk areas with a federally backed mortgage.
Risk can vary greatly, even within the same neighborhood. Remember, flood insurance is available for all properties, regardless of risk designation, and is the only insurance that protects you from flood damage.
Visit the National Flood Insurance Program Consumer Website
Zone Changes May Affect Flood Insurance Costs
Insurance costs may rise for some to reflect heightened risk. Likewise, some property owners may find their risk is now reduced and that they are eligible for an optional, low-cost flood insurance policy.
Learn More About the Preferred Risk Policy
Flood Insurance Requirements and Options
Whenever new maps are adopted, some property owners' flood insurance requirements will change. However, options exist that will allow property owners to save money while still protecting their property.
View the following table to learn whether your home flood insurance is mandatory or optional based on the following map indications:
| If Maps Show... |
These Requirements, Options, and Savings Apply |
| Change from low or moderate flood risk to high risk |
Flood insurance is mandatory - Flood insurance will be federally required for most mortgage holders. Insurance costs may rise to reflect the true (high) risk.
Grandfathering offers savings. The National Flood Insurance Program (NFIP) has "grandfathering" rules to recognize policyholders who have built-in compliance with the flood map or who maintain continuous coverage. An insurance agent can provide more details on how to save. |
| Change from high flood risk to low or moderate risk |
While obtaining flood insurance is not mandatory, it is highly advised. The threat of flooding has been mitigated, but not entirely eliminated. Therefore, it’s still possible to secure flood insurance at more affordable rates.
Note: Twenty-five percent (25%) of all flood insurance claims come from low-to-moderate-risk areas.
Conversion offers savings:An existing policy can be converted to a lower-cost Preferred Risk Policy. |
| No change in risk level |
No change in insurance rates - Property owners should talk to their insurance agents to learn their specific risks and take steps to protect their property and assets. |
Flood Risks and Flood Zones
Please see the references below to better understand flood maps and their level of risk associated with zones. Flood maps refer to areas of high, medium, or low risk as "flood hazard zones" and the zones of highest risk as "Special Flood Hazard Areas":
| Risk Level |
Flood Hazard Zone |
| High Flood Risk |
AE, A, AH or AO Zone - These properties have a 1% chance of flooding in any year - and a 26% chance of flooding over the life of a 30-year mortgage.
Insurance note - High-risk areas are called Special Flood Hazard Areas and flood insurance is mandatory for most mortgage holders. |
| Low or Moderate Flood Risk |
Shaded X Zone - These properties are outside the high-risk zones. The risk is reduced but not removed.
X Zone - These properties are in an area of overall lower risk.
Insurance note:Lower-cost preferred rate flood insurance policies (known as Preferred Risk Policies) are often an option in these areas. |
More Information About the National Flood Insurance Program
- Most Homeowner's insurance does not cover flood damage.
- There typically is a 30-day wait after the purchase of a flood insurance policy before it becomes effective.
- Properties located in low- or moderate-risk flood zones (marked B, C, or X on the flood maps) can and still do flood; but property owners may be eligible to purchase a flood insurance policy, a Preferred Risk Policy, at reduced premiums.
- Historically, 20-25% of all flood claims paid out are on properties located outside of high-risk areas, known as Special Flood Hazard Areas (SFHAs).
- The higher up a property owner raises their structure above the base flood elevation in high-risk areas (to a certain limit), the lower their insurance premiums will be. A property owner in a high-risk area could save as much as 50% in premium payments by building just 2-3 feet above the base flood elevation.
Insurance Resources
FEMA Flood Insurance Flyers
For a deeper understanding and reading of flood-related information in Osceola County, Florida, please explore the following links.