Flood Zone Consulting

Flood Zone Consulting

In 1973, Congress passed the Flood Disaster Protection Act. It mandates that federally regulated lenders can not make, increase, extend, or renew any loan on applicable structures in a Special Flood Hazard Area unless flood insurance is purchased.

A Special Flood Hazard Area (SFHA) is an area deemed susceptible to inundation by a flood having a one-percent chance of being equaled or exceeded in any given year as determined by the Federal Emergency Management Agency (FEMA).

Flood insurance can be very expensive. Even when coverage is provided by the subsidized National Flood Insurance Program (NFIP), it costs anywhere from several hundred to several thousand dollars per year. Aside from being a strain on one's budget, such an an onerous obligation can adversely affect property value. Therefore, it is prudent for anyone with an interest in property that is mapped in a SFHA to determine if the designation is warranted, and if so, to properly determine the minimum rate of insurance actually required.

Flood Risk

While the services that Alaco offers may result in the removal of a property or structure from FEMA's Special Flood Hazard Area designation, clients are cautioned not to dismiss the potential for flooding at any location. Local storm drain systems are usually only designed to adequately drain runoff from a storm event having a 10-year return frequency, and larger flood control facilities may not always perform as intended. Keep in mind that storm drain inlets, culverts, and creeks are susceptible to blockage, and pump stations can sometimes fail to be effective. Inundation by only a few inches of silt and sewage laden floodwater can cost thousands of dollars in cleanup, repair, and replacement costs.