A flood zone is a designated area that has a certain degree of risk for floods. These zones are often near sources of water, such as rivers, oceans, or lakes.
People who live in flood zones often need to purchase flood insurance as a supplement to a standard homeowners' policy.
FEMA provides charts that identify flood zones. These charts are an important part of the underwriting process, since floods can often cause property damage that results in total loss of house or commercial buildings. As a result, those who own property in flood zones face some challenges when it comes to insuring it.
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