FAQ

Q: If I live in an area such as the Greater Houston area, Galveston, other coastal areas, as well as other similar "flat" lands, am I in the "flood zone?"
A: Well, this is a little bit of a trick question.  The truth is, almost all property, particularly in areas like those listed above, are  ALL in "the" flood zone, because all properties in those areas are in some kind of "flood zone."  In fact 70% of the losses in tropical storm Allison were "not in the flood zone."  That is they were not in the "Special Flood Hazard Area," in other words they were not in the "100 year flood plain," but they were in one of the lower risk flood zones.  This storm proved that most properties are at flood risk, because Allison proved that at any given time, nature can dump enough water on an area in a short enough span of time such that it simply cannot drain away fast enough to avoid losses by flood.

Q: What is an elevation certificate?
A: An elevation certificate is a document form meeting FEMA specifications that indicates the relevant property and structure elevations on a given property as compared to the Base Flood Elevation.  The form is "certified" by individuals authorized by the laws in your state to certify elevations.  In Texas hydrology is considered an engineering function, and Registered Professional Engineers are allowed to certify elevations.  Licensed Surveyors are also allowed to certify elevations utilizing drawings developed by engineers.  Most states have similar laws, however, you should contact your state's engineering and/or surveyor board/authority to verify the procedure in your state.

Q: What is a "Base Flood Elevation" (BFE)?
A: This is the elevation in a given area that is often referred to as the "100 year flood plain/zone."  It is also referred to as a Special Flood Hazard Area (SFHA).

Q: Why do I need an elevation certificate?
A: On structures built after Flood Insurance Rate Maps (FIRMs) were developed (this is known as "post-FIRM construction) an elevation certificate is required when the structure is in a SFHA.  On structures built prior to the release of the FIRM (this is known as "pre-FIRM" construction) an elevation certificate is optional even in a SFHA, but will often allow the property owner to obtain coverage at reduced premiums.

Q: What is an elevation determination:
A: This is simply an engineering report indicating the relevant elevations at a given property location, which will allow the property owner to asses flood risk and determine if an elevation certificate might perhaps allow the owner to qualify for reduced flood insurance premium(s).

Q: What is a plat survey?
A: A plat survey aside from documenting the property boundary limits etc., is utilized by title insurance companies to verify property boundaries, and to verify there are no encroachments on easements and other issues that may prevent "clear" title transfer in a real estate transaction.

Q: How are the rates determined for a flood insurance policy?
A: A number of factors are considered in determining the premium for flood insurance coverage. They include the amount of coverage purchased; location; age of the building; building occupancy; design of the building; and, for buildings in Special Flood Hazard Areas (SFHAs), elevation of the building in relation to the Base Flood Elevation. Buildings eligible for special low-cost coverage at a pre-determined, reduced premium rate are single-family and one- to four-family dwellings located in Zones B, C, and X. For these exceptions, certain loss limitations exist.

Q: When is mandatory flood insurance required?
A: The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 mandate the purchase of flood insurance as a condition of Federal or federally regulated financing for acquisition and/or construction of buildings in Special Flood Hazard Areas (SFHAs) of any participating community. The purchase of flood insurance on a voluntary basis is frequently prudent, even outside of SFHAs.

These Acts prohibit Federal agency lenders, such as the Small Business Administration (SBA) and United States Department of Agriculture's (USDA) Rural Housing Service, and Government-Sponsored Enterprises for Housing (such as Freddie Mac and Fannie Mae) from making, guaranteeing, or purchasing a loan secured by real estate or mobile home(s) in a SFHA, unless flood insurance has been purchased and is maintained during the term of the loan.