Flood Zone AE

Flood Zone AE is a designation by the Federal Emergency Management Agency (FEMA) that indicates there is at least a 1% chance of flooding annually, and wave heights do not exceed three feet. This designation is based on the base flood level, with the expected water level of a 100-year flood event, in a designated floodplain.

While 1% may seem low, it is considered to be in FEMA’s high-risk category for flood zone designations, according to ClimateCheck.

What are the other flood zones?

FEMA divides flood-prone areas into several categories to show areas of high- and moderate-to-low-flood risks. Here’s a list of the other designations and what they mean:

• Zone A is a label for areas that have a 1% chance of flooding annually, and approximately a 26% chance of flooding over a 30-year period. It includes these subcategories: AO, AH, AE, A1–A30, A99.
• Zone AR and combinations (AR/AE, AR/AO, AR/A1–A30, AR/A)
• Zone V (coastal) and subcategories: VE, V1–V30
• Zone B and shaded X are labels for moderate flood risk areas. They average between a 1% and 0.2% annual chance flood levels.
• Zone C and unshaded X are labels for minimal flood risk areas.

If you believe your home may be in a high-risk flood zone, or simply want to check, you can use FEMA’s Flood Map Service Center. To use the lookup feature, you simply need to enter your address, place, or the longitude/latitude coordinates, and you will be brought to a map where your flood zone designation is indicated.

What parts of the U.S. have the most AE flood zones?

Areas with the highest risks of flooding appear most commonly in coastal regions and beside major riverways, where the 100-year floodplain is well defined. Many areas in the Midwest, south Midwest, and certain coastal regions are designated AE due to historical patterns and the presence of significant bodies of water, according to ArcGIS.

Can a flood zone change?

Flood zones can change over time. If new and more accurate data becomes available because of FEMA-funded studies or community efforts, then the agency may revisit its designations, according to FEMA. FEMA also has a process to request a change in designation as well if you believe your property was incorrectly categorized.

It isn’t inherently bad to live in a home in a Flood Zone AE. But choosing to live in or purchase a home in a high-risk flood zone comes with measurable risk. Going into the commitment with a full understanding of your risks is important in determining whether it is worth it in your circumstances. Here are some things to consider:

Increased risk of flooding

When you live in a flood zone AE, that comes with a high risk of flooding. Even at 1% over time, this can translate into considerable risk, and just one major flood can be potentially disastrous.

Higher insurance costs

Properties in AE zones may face higher home insurance costs, and you may be required to get flood insurance by your mortgage provider.

Potential resale challenges

Being located in a high-risk flood zone can significantly impact property value, according to Amres.

Costly flood mitigations

To increase the safety of your home and property value, you may need to invest in flood mitigations, such as flood vents or elevating your home, which can increase the amount of money you need to put into your home, explains Amres.

Talk with your realtor

When you’re purchasing a home, due diligence on the history of the home is a must. This includes asking about the history of the home – including its history of flooding.

Standard homeowners insurance does not cover flood damage. Homeowners in high flood-risk areas will have to purchase flood insurance separately if they want it, or if it is legally required. It’s also worth noting that between 2016 and 2021 the average flood insurance claim was $68,000, which never has to be repaid, according to FloodSmart.gov.

Are you required to get flood insurance?

If your lender is federally regulated or insured, then they are required to make sure appropriate flood insurance is in place if the property is in a Special Flood Hazard Area. Flood Zone AE is an SFHA, so yes, you may be required to purchase flood insurance.

For loans from private institutions, where flood insurance is not mandated by law, it may still be mandated by your lender, according to HelpWithMyBank.gov. You should always verify your lenders' insurance requirements before finalizing any loan process.

How much does flood insurance in Zone AE cost?

The price of flood insurance can vary drastically based on several factors. For example, the cost of the property, the estimated price to replace items lost because of flooding, etc. Generally speaking, the National Flood Insurance Program (NFIP) provides standard coverage. Often, private insurers offer more competitive rates and additional coverage options.