Does Your Flood Insurance Go Up If FEMA Rezones?
- FloodPrice
- Sep 24
- 6 min read
Yes, your flood insurance premiums may increase if FEMA rezones your property into a higher-risk flood zone, but this depends on your unique situation. FEMA’s updated Risk Rating 2.0 method considers more than just flood zones—it also looks at your home’s elevation, distance to water, replacement cost, and local flood history. If your property is newly mapped into a Special Flood Hazard Area (SFHA), your lender may also require you to carry flood insurance. In some cases, you could even qualify for discounts or see lower premiums if your risk decreases.
What FEMA Rezoning Means
FEMA creates and updates Flood Insurance Rate Maps (FIRMs), also known as flood zone maps, to indicate areas at risk of flooding. These maps determine which properties fall in high-risk, moderate-risk, or low-risk flood zones. When FEMA updates a map, your property may:
Move into a higher-risk flood zone (such as Zone AE or VE).
Move into a lower-risk flood zone (such as Zone X).
Remain in the same zone but with new Base Flood Elevation (BFE) requirements.
Changes on a flood zone map affect not only how insurance companies view your property’s risk but also whether lenders require coverage.
Want a free quote? Our online tool lets you compare NFIP flood insurance with private flood insurance policies side by side, saving our customers hundreds, sometimes thousands.
FEMA’s Risk Rating 2.0 and Why Premiums Change
FEMA and the National Flood Insurance Program (NFIP) now use Risk Rating 2.0 to determine premiums. Instead of relying only on the flood zone, this approach factors in:
Elevation compared to the BFE.
Distance to rivers, lakes, or coastlines.
The property’s rebuild cost.
The type and frequency of flooding in the area.
This means two homes in the same flood zone may have very different insurance rates depending on these property-specific details.
FloodPrice.com allows you to compare NFIP flood insurance rates with private flood insurance policies, so you can see all your options in one place. Get fast and free quote online.
What Happens If Your Home Is Rezoned
When FEMA updates the flood zone map, the effects on your insurance may include:
Higher premiums if you are rezoned into a high-risk flood zone.
Mandatory flood insurance is required if you are newly mapped into a Special Flood Hazard Area and have a federally backed mortgage.
Discounts may apply if you are “newly mapped” into a high-risk zone. FEMA NFIP flood insurance offers up to a 70% discount in the first year, which phases in gradually over time. This helps ease the transition when properties are moved into higher-risk zones.
Grandfathering rules that may allow you to keep a previous lower-risk rate if you maintain continuous coverage.
The best way to prepare is to review both NFIP flood insurance and private flood insurance quotes. In some cases, private carriers may provide competitive alternatives depending on your property’s risk factors.
Can Rezoning Ever Lower Flood Insurance Costs?
Yes. While many FEMA map updates add homes to higher-risk areas, some homeowners are rezoned into lower-risk flood zones. When this happens:
A property moving from Zone AE (high-risk) to Zone X (low-risk) may no longer require flood insurance under federal lending rules.
NFIP flood insurance rates for Zone X are typically lower than high-risk zones, so premiums may decrease if you keep coverage.
These changes may occur when new flood control projects, improved topographic data, or updated modeling show that the property is at less risk than previously thought.
It is important to note that about 25% of flood claims come from outside high-risk areas, according to FEMA and the Insurance Information Institute. Even if insurance is no longer required, maintaining coverage can be a smart way to stay protected.
You can use FloodPrice.com to compare both NFIP flood insurance and private flood insurance in minutes—even if you are moved into a lower-risk zone. Start a quote and see how much you can save on your policy.
FEMA NFIP Flood Insurance Discounts
Homeowners impacted by FEMA map updates may qualify for statutory discounts through the NFIP. These discounts are meant to make the transition easier for households that are newly placed into a Special Flood Hazard Area, helping reduce the initial cost of coverage.
Here are the main FEMA NFIP discount programs:
Newly Mapped Discount – 70%
Applies when a property is newly mapped into a high-risk flood zone. The discount begins in the first year and phases out gradually, with annual increases subject to FEMA’s statutory caps.
Pre-FIRM Discount – 60%
For homes built before the community’s first Flood Insurance Rate Map (FIRM) and insured under the NFIP.
Emergency Program – 60%
Available in communities participating in the NFIP’s Emergency Program.
AR and A99 Zone Discount – 60%
Applies to properties in areas with flood protection systems (like levees) that are being restored or improved.
These discounts are administered by FEMA, not private insurers. If you purchase an NFIP flood insurance policy through FloodPrice.com, you can take advantage of them when eligible. That said, even with FEMA’s discounts, private flood insurance may sometimes offer more competitive rates or different coverage options. That’s why it’s smart to quote both NFIP and private flood insurance side by side online at FloodPrice.com before deciding.
For more details about FEMA's discounts, review their Discount Explanation Guide.
Preparing for a FEMA Map Change
If FEMA updates your community’s flood zone map, here are steps to take:
Check your property’s zone using our Flood Zone Map Lookup tool.
Maintain continuous coverage, which may allow you to qualify for certain discounts.
Obtain an Elevation Certificate to show your property’s height relative to the BFE.
Apply for a Letter of Map Change (LOMC) if you believe your home was incorrectly mapped. You may be able to get out of paying for flood insurance.
Compare NFIP and private flood insurance to ensure you’re getting the most appropriate coverage for your situation.
Key Takeaway on Flood Insurance Costs After FEMA Flood Map Rezoning
FEMA rezoning does not always mean higher flood insurance costs. If your property is moved into a higher-risk flood zone, your premiums may increase. However, some properties are rezoned into lower-risk zones, which can reduce costs. With FEMA NFIP flood insurance now based on Risk Rating 2.0, factors like elevation, property value, distance to water, and flood history are all considered.
The smartest step is to compare both NFIP flood insurance and private flood insurance quotes. FloodPrice.com makes this easy with an online tool that shows you options side by side in minutes.
TL;DR
If FEMA updates the flood zone map and your home is moved into a higher-risk zone, your flood insurance premium can rise. Under Risk Rating 2.0, other details like elevation, replacement cost, and distance to water also matter. Some homeowners qualify for discounts or may even see premiums decrease if rezoned into a lower-risk flood zone. Always compare NFIP and private flood insurance options to understand your choices.
Flood Zone Map Changes: FAQs
Q: Does FEMA rezoning always raise flood insurance rates?
A: Not always. Some properties are moved into lower-risk zones, which may reduce premiums.
A: It is the pricing method for FEMA NFIP flood insurance that considers property-specific factors such as elevation, distance to water, and rebuild cost.
Q: If my home is newly mapped into a flood zone, can I get a discount?
A: Homeowners impacted by FEMA map updates may qualify for statutory discounts through the NFIP. These discounts are designed to reduce the financial impact when a property is newly placed into a Special Flood Hazard Area. For more information, review FEMA's Discount Explanation Guide.
Q: Will my lender require flood insurance if I am rezoned into a Special Flood Hazard Area?
A: Yes, if you have a federally backed mortgage.
Q: Can private flood insurance be cheaper than NFIP flood insurance?
A: In some cases. Private flood insurance companies use their own models and may provide competitive options depending on your property.
Disclaimer: The information on this site is provided for general guidance and informational purposes only. We make no guarantees regarding the completeness or reliability of the content. All liability for any reliance on the information is expressly disclaimed.
