What are considered flood zones for preferred risk?

For preferred risk flood insurance coverage, Zones B, C, and X are recognized as areas with a reduced risk of flooding compared to high-risk zones. Zone B includes areas that are outside the base floodplain, meaning they are at a lower risk of flooding but still may be prone to flooding in certain situations, especially during severe weather. Zone C is classified as an area of minimal flood hazard, while Zone X includes areas of moderate flood hazard, but still offers a more favorable risk profile for insurance purposes than high-risk zones such as A or V.

These criteria help in determining insurance rates and eligibility for federal flood insurance programs. Generally, properties located in these zones may benefit from lower insurance premiums due to the perceived reduced risk of flooding, which is crucial for homeowners and businesses in making informed decisions about flood insurance coverage.