Flood Maps are Changing… 
What Real Estate Agents Should Know 
Mississippi coastal counties will soon enter a new era. 

The Mississippi Coastal Flood Study, undertaken by the Federal Emergency Management Agency (FEMA) and the State 
of Mississippi, is nearing completion. This in-depth, large-scale study to re-examine flood hazards and related risks in the 
coastal counties will result in new Digital Flood Insurance Rate Maps (DFIRMs) that will reflect current flood risks, 
replacing maps that are up to 25 years old. As a result, property owners throughout Hancock, Harrison and Jackson 
Counties will have up-to-date, reliable and Internet-accessible information about their flood risk—on a property-byproperty basis. Some residents and business owners will learn that their flood risk is higher—or lower—than they thought. 
As a real estate agent, you should inform your clients of any factors that may affect property such as the flood zone in 
which the property is currently located as well as any pending change to that zone. 

In addition to showing the region’s current flood risks, the new maps are much easier to use than the old paper maps. 
They will be available on the Web with easy access for locating property of interest. Buyers whose home or business will 
be mapped into an area of high risk can save on flood insurance before new maps become effective through the National 

Flood Insurance Program’s (NFIP) “grandfathering” provision. 

As a Listing Agent, Check the Risk Level 

Home sellers and their agents should always make it a point to disclose to a 
prospective buyer if the property is now, or will be, mapped in a high-risk flood 
zone (known as a Special Flood Hazard Area, or SFHA). To help determine that, 
they can locate their property on the preliminary DFIRMs that will be available 
for review later this year. Information about how to use the flood maps is also 
available on the website. The Flood Risks and Flood Zones chart on the next page 
describes what the various flood zones mean. 

Tell Buyers About Flood Insurance Requirements 

Buyers also need to be made aware of any upcoming changes in flood risk status 
and the flood insurance requirements associated with a property. When the new 
maps are adopted, flood insurance requirements will change. However, many 
property owners can save if they purchase their insurance prior to map adoption. 
Additionally, current owners can transfer the policy to new owners at the time of 
purchase. This process is known as “grandfathering.” The first chart on the next 
page gives more details. However, your clients should always consult their 
insurance agent to determine the best option to protect their property. 

Questions, Comments and Protests 

Every home and commercial building in Hancock, Harrison and Jackson 
Counties have some risk of flooding—but the risk varies, sometimes within the same neighborhood, or even the same 
property. One thing to keep in mind: the new flood maps indicate if the property is in a high risk area, not a specific 
structure on the property. In some cases, an owner may feel that the land on which the structure is built is elevated enough 
to warrant a lower flood insurance rate or a change in zone. If a property owner wishes to contest the new zone or the new 
BFE, they may file an appeal or protest during a 90-day public comment period following the release of the preliminary 
maps. More information on this process is available at www.mscoastalmapping.com. 

MAP ADOPTION MILESTONES 

Mid-January 2008 — Start of 90-day public comment period (for filing appeals and protests)

Spring/Summer 2008* — Review and resolution of appeals and protests.  Final flood maps created.

Fall 2008* — Maps adopted; new insurance requirements take effect.   

Visit www.coastalmapping.com to learn more about the preliminary maps and learn when map changes take effect. 

For general information call the MS Coastal Mapping Call Center at 1-866-816-2804 
Open 8:00 a.m. to 4:30 p.m. Monday through Friday 

*Date subject to change pending completion of review processes 
 
Flood Insurance Requirements and Options 

When the new maps are adopted, flood insurance requirements will change. However, options exist that will allow 
property owners to save money while still protecting their property. 

If Maps Show… These Requirements, Options and Savings Apply 

Change from low or moderate flood risk to high risk 
Flood insurance is mandatory. Flood insurance will be federally required for most 
mortgage holders.1 Insurance costs may rise to reflect the true (high) risk. 
“Grandfathering” can offer savings. The National Flood Insurance Program has 
“grandfathering” rules to recognize policyholders who have built in compliance with the flood 
map in effect at the time of construction or who maintain continuous coverage. Sometimes, 
though, using the new flood maps can actually result in a lower premium than by 
“grandfathering.” 

Change from high flood risk to low or moderate risk 
Flood insurance is optional but recommended. The risk has only been reduced, not 
removed. Flood insurance can still be obtained at lower rates. About 25 percent of all flood 
insurance claims come from low- to moderate-risk areas. 
Conversion offers savings. An existing policy can be easily converted to a lower-cost 
Preferred Risk Policy, if the building qualifies. 

Increase in the Base Flood Elevation (BFE) 
An increase in BFE can result in higher premiums; however, “grandfathering” can 
offer savings. The National Flood Insurance Program (NFIP) has “grandfathering” rules to 
recognize policyholders who have built in compliance with the flood map in effect at the time 
of construction. This could result in significant savings. 

No change in risk level No change in insurance rates. 
However, this is a good time to review their coverage and 
ensure that their building and contents are adequately covered. 

Flood Risks and Flood Zones 

Flood maps refer to areas of high, medium or low risk as “flood hazard zones” and the zones of highest risk as “Special 
Flood Hazard Areas. 

Risk Level Flood Hazard Zone High Flood Risk 

AE, A, AH or AO Zone. These properties have a one percent chance of flooding in any year — and a 26 percent chance of flooding over the life of a 30-year mortgage. 

VE Zone. These properties have a one percent chance of flooding in any year and also face 
hazards associated with coastal storm waves. 

Insurance note: High-risk areas are called “special flood hazard areas and flood insurance 
is mandatory for most mortgage holders. 

Low or Moderate Flood Risk 
Shaded X Zone. These properties are outside the high-risk zones. The risk is reduced but 
not removed. 

Unshaded X Zone. These properties are in an area of overall lower risk. 

Insurance note: Lower-cost preferred rate flood insurance policies (known as Preferred 
Risk Policies) are often an option in these areas. 

1 Required for loans provided by federally regulated lenders as well as government-sponsored enterprises such as Freddie Mac and 
Fannie Mae. Note that flood insurance can be required by a lender even if the building is located outside of a high-risk area.