If you’re considering buying a home in coastal North Carolina, you will almost certainly hear the term “flood zone.”

For many buyers, flood zones can be confusing at first. Questions about flood risk, insurance requirements, and property costs often come up during the home search process. Nolan Formalarie of Discover NC Homes recently explained the two most common flood zones buyers encounter in the coastal counties of Brunswick, New Hanover, and Pender.

Understanding these zones can help buyers make informed decisions when purchasing property near the coast.

Why Most Coastal Properties Are in a Flood Zone

Along the North Carolina coast, nearly every property is located within a FEMA-designated flood zone. This doesn’t necessarily mean a home is likely to flood. It simply means the area has been mapped according to different levels of potential flood risk.

Two of the most commonly discussed flood zones in coastal real estate are Zone X and Zone AE.

Flood Zone X: The 500-Year Flood Plain

The most favorable flood designation for homeowners is typically Flood Zone X. Zone X is considered part of the 500-year flood plain, meaning there is a lower statistical probability of flooding.

An important factor for homebuyers is that flood insurance is generally not required by lenders for homes in Flood Zone X when a mortgage is involved. Because of this, homes in Zone X are often attractive to buyers who want to avoid mandatory flood insurance requirements.

Flood Zone AE: The 100-Year Flood Plain

Another common designation along the coast is Flood Zone AE. Zone AE represents the 100-year flood plain, which means the area has a higher statistical chance of experiencing flooding compared to Zone X.

When purchasing a home in an AE flood zone with a mortgage, lenders typically require flood insurance.

However, the cost of flood insurance in these zones is often lower than many buyers expect. According to Nolan Formalarie, annual premiums can commonly range from approximately $800 to around $1,200 or $1,300 per year, depending on the property and policy details.

A Common Misconception About Coastal Homes

A frequent misconception among buyers is that some homes along the coast are “not in a flood zone.” In reality, most properties in Brunswick County, New Hanover County, and Pender County fall within some form of FEMA flood designation.

The key difference is the level of flood risk and whether flood insurance is required by lenders, which is why understanding Zone X and Zone AE is important when evaluating a property.

Why Understanding Flood Zones Matters for Buyers

Knowing the flood zone of a property helps buyers understand:

  • Whether flood insurance will be required
  • Potential annual insurance costs
  • Lender requirements when financing a home
  • Long-term ownership expenses

For buyers considering coastal real estate, this information is a normal and important part of the home buying process.

Questions About Flood Zones?

If you’re considering purchasing a home in Brunswick County, New Hanover County, or Pender County, understanding flood zones is an important step.

If you have questions about flood zones or coastal real estate in North Carolina, Nolan Formalarie with Discover NC Homes is always available to help clarify the details.

Nolan Formalarie
Discover NC Homes
🌐 https://discovernchomes.com

About Nolan Formalarie

Nolan Formalarie has been in the North Carolina Real Estate Industry for over 8 years and enjoys every minute of it. He is involved in every aspect of the industry including selling and purchasing residential property, home watch services, property management, association management and construction.