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Insurance Glossary

Floodplain

Property

Definition

Any land area susceptible to being inundated by floodwater from any source, including rivers, streams, coastal waters, and areas with inadequate drainage. The regulatory floodplain is the land area covered by the floodwaters of the base flood (1% annual chance flood), also called the Special Flood Hazard Area. Floodplain management regulations restrict development in these areas to reduce flood damage and protect lives. Properties in the regulatory floodplain typically require flood insurance if they have federally backed mortgages. Floodplain boundaries are shown on FEMA Flood Insurance Rate Maps and are subject to change as conditions evolve.

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Related Terms

Special Flood Hazard Area
High-risk flood zones designated by FEMA where there is at least a 1% chance of flooding in any given year (also known as the 100-year floodplain). Properties located in SFHAs and secured by federally backed mortgages are required by law to carry flood insurance. These areas are shown on Flood Insurance Rate Maps (FIRMs) and include Zone A (riverine flooding) and Zone V (coastal flooding with wave action). Buildings in SFHAs face significantly higher flood insurance premiums than those in moderate or low-risk zones.
Floodway
The channel of a river or stream and the adjacent land areas that must be reserved to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height (typically one foot). Floodways are shown on Flood Insurance Rate Maps and represent the most hazardous portion of the floodplain due to high velocity water and debris. Development in floodways is strictly regulated or prohibited because any obstruction could increase flood heights on other properties. Buildings in floodways face the highest flood insurance rates and may be difficult or impossible to insure. Floodway boundaries are determined through detailed hydraulic modeling.
Base Flood Elevation
The computed elevation to which floodwater is anticipated to rise during a base flood (a flood with a 1% chance of occurring in any given year, also called a 100-year flood). Shown on FEMA Flood Insurance Rate Maps (FIRMs), the BFE is used to determine flood insurance premiums and building requirements. Structures built below the BFE face higher insurance costs and greater flood risk. Local building codes typically require new construction in flood zones to have the lowest floor elevated at or above the BFE. Knowing your property's BFE is crucial for flood risk assessment and insurance decisions.
FIRM
Flood Insurance Rate Map - an official map created by FEMA that shows flood risk zones, base flood elevations, and floodplain boundaries for a community. FIRMs are used to determine flood insurance requirements and premium rates under the National Flood Insurance Program. These maps identify Special Flood Hazard Areas where flood insurance is mandatory for federally backed mortgages. Property owners can use FIRMs to understand their flood risk and make informed decisions about insurance coverage and property improvements. Maps are periodically updated as flood risk data changes.
Actual Cash Value
The repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation.
Depreciation
The decrease in value of property over time due to wear, tear, age, or obsolescence.
Replacement Cost
The cost to replace damaged or destroyed property with new property of similar kind and quality, without deduction for depreciation.
Homeowners Insurance
Insurance coverage that protects your home and personal property against damage, theft, and liability claims.