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
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.
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.
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.
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.
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)
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!
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.
“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.
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
| Feature | NFIP | Private Insurance |
|---|---|---|
| Max Residential Coverage | $250K | Up to $2M+ |
| Waiting Period | 30 days | Often <15 days |
| Basement/Contents Coverage | Limited | Often broader |
| Rate Flexibility | Limited | Underwritten to risk profile |
Tip: Always check that private policies meet lender guidelines under the Biggert-Waters Act.
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)
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.