Do you think flood insurance is only for coastal properties?
Have you ever been told your house won’t flood because it’s not near the ocean?

That’s a dangerous myth. Many inland homeowners are shocked to discover their property sits in Flood Zone AE — a designation that requires mandatory flood insurance, even hundreds of miles from the coast.

In this article, you’ll learn:

• What Flood Zone AE really means

• How it affects non-coastal properties

• What risks you face

• How you can protect your property, reduce premiums, and avoid unexpected costs

What Is Flood Zone AE?

Flood Zone AE is a FEMA-defined high-risk flood zone found on Flood Insurance Rate Maps (FIRMs). It's part of a group called Special Flood Hazard Areas (SFHAs), where there’s a 1% annual chance of flooding — also known as the 100-year floodplain.

Unlike older A1–A30 zones, Zone AE includes critical Base Flood Elevation (BFE) data — the elevation to which floodwaters are expected to rise in a base flood event.
If your property sits below the BFE, your insurance premiums will likely be higher.

Why Non-Coastal Properties Are Still at High Risk

You don’t need to live near the ocean to face serious flood risk. In fact, many of the most costly flood disasters in U.S. history have happened far from coastal areas.

Common Non-Coastal Flood Triggers:

• Heavy Rainfall – Overwhelmed urban drainage systems

• Snowmelt – Springtime risk in northern states

• Dam/Levee Failure – Due to aging infrastructure

• Groundwater Flooding – Saturated ground from prolonged rain

• Pluvial Flooding – Surface water accumulation in urban areas

If your home is surrounded by concrete, located in low-lying areas, or near a river — your risk is real.

Types of Flooding You May Face in Zone AE

• Riverine Flooding – Overflowing rivers and streams

• Flash Floods – Rapid water buildup after storms or dam breaches

• Pluvial Flooding – Rainwater pooling in urban, low-lying zones

• Groundwater Flooding – Rising water table seeping into basements

Even one inch of floodwater can cause over $25,000 in damage, according to FEMA.

How Banks Determine Flood Insurance Requirements

When is flood insurance required?
If your property is in Zone AE and you have a federally backed loan, flood insurance is mandatory.

How the determination happens:

• Lenders use the Standard Flood Hazard Determination Form (SFHDF)

• They hire third-party flood zone determination companies

• FEMA FIRMs and Base Flood Elevation data are used

If you’re newly mapped into AE, you may qualify for discounted rates during your first year — ask your lender!

Escrow and Escalation: How Flood Insurance Affects Your Mortgage

Flood premiums are often escrowed with your mortgage.
But what happens when rates increase?

• Your escrow balance may run short

• Your monthly mortgage payment can jump significantly

• You may face force-placed insurance — often costly and limited

Proactive planning can save you hundreds per year — especially if you obtain an Elevation Certificate.

What Are the Biggest Misconceptions About Flood Insurance?

• “I’m not near water, so I don’t need insurance.”

• “My homeowner’s policy covers floods.” (It doesn’t.)

• “If I flood, FEMA will bail me out.” (Only if a disaster is declared—and even then, mostly through loans.)

• “My flood zone can’t change.” (It can—and does.)

More than 20% of all flood claims come from outside high-risk zones.

How to Lower Flood Insurance Premiums in Zone AE

Top Strategies:

• Elevation Certificate – Proves your home is built above the BFE

• Flood Vents – Reduce hydrostatic pressure and lower your risk profile

• Mitigation Discounts – Through FEMA’s Community Rating System (CRS)

• Private Flood Insurance – Often cheaper than NFIP, with higher coverage limits

Private Flood Insurance vs. NFIP: What’s Best for You?

Tip: Always check that private policies meet lender guidelines under the Biggert-Waters Act.

What to Do If You Think You’re Wrongly Mapped into Zone AE

• Order an Elevation Certificate

• Request a Letter of Map Amendment (LOMA) from FEMA

• Consult with a flood expert (like our team at The Flood Insurance Guru)

Conclusion: Take Control of Your Flood Zone AE Risk Before It Takes Control of You

Now you understand how non-coastal Zone AE risks are determined, how they affect your insurance and mortgage, and what you can do to mitigate both risk and cost. Many homeowners wait until their lender forces coverage—or worse, until after a flood. Don’t be one of them. Start by reviewing your flood zone today. 

We’re The Flood Insurance Guru, and we’ve helped thousands of property owners just like you save on flood premiums while staying protected. Whether you need help with mapping, mitigation, or market comparisons, we’re here to help.

Ready to Get Started?

 30% of flood insurance claims come from low-risk areas, so do not assume your home is safe.