A flood certificate — officially called a Standard Flood Hazard Determination (SFHD) — is a document that identifies whether a property is located in a FEMA-designated Special Flood Hazard Area (SFHA), commonly known as a flood zone. Federal law requires lenders to obtain a flood determination for every mortgage loan before funding, and the determination remains on file for the life of the loan. If the property is in a flood zone, the borrower must purchase and maintain flood insurance as a condition of the mortgage.
The flood determination is based on FEMA Flood Insurance Rate Maps (FIRMs), which classify areas according to their flood risk. Zone A and Zone V (coastal areas) are high-risk Special Flood Hazard Areas where flood insurance is mandatory for federally backed mortgages. Zone X (shaded) is moderate risk, and Zone X (unshaded) is minimal risk — flood insurance is not required in these zones but may still be recommended. Zone designations can change when FEMA updates its maps, potentially affecting insurance requirements and costs for existing homeowners.
The cost of a flood certificate is typically $15 to $25 and is paid by the buyer at closing as part of closing costs. While inexpensive, the determination it provides can have a major financial impact. Standard homeowners insurance does not cover flood damage — a separate flood insurance policy is required. Flood insurance through the National Flood Insurance Program (NFIP) averages approximately $800 to $1,200 per year but can be significantly higher for properties in high-risk zones, especially those with repeated flood claims.
In Florida and Texas — the two states Beycome Title serves — flood risk is a particularly important consideration. Both states have extensive coastal areas, low-lying terrain, and histories of significant flooding. Even properties not in a designated flood zone can experience flooding from heavy rainfall, storm surge, or inadequate drainage. Many financial advisors recommend flood insurance even for properties outside high-risk zones, as approximately 25% of flood claims come from low- to moderate-risk areas.
At Beycome Title, the flood certificate is part of our standard closing documentation. We order the determination early in the process so any flood zone designation is identified promptly — giving the buyer time to obtain flood insurance quotes and factor the cost into their budget. The flood zone status is noted on the closing disclosure. Estimate your closing costs including flood certification, or get your free quote.