On Real Estate & More – March 2026

FLOODING IS one of the most common and expensive natural hazards in Oregon. Rivers, coastal areas, and even seasonal drainages can place properties at risk. For property owners, understanding floodplain insurance requirements is essential; especially when a property is located within a mapped floodplain.

A floodplain is an area of land that has a higher likelihood of flooding during periods of heavy rain, snowmelt, or storm surge. Flood risk is identified and mapped by the Federal Emergency Management Agency (FEMA) through Flood Insurance Rate Maps (FIRMs). These maps divide land into flood zones that indicate the level of flood risk.

The most important designation is the Special Flood Hazard Area (SFHA). SFHAs are labeled as Zone A, AE, V, or VE and represent areas with a 1% annual chance of flooding, or the 100-year floodplain. In Oregon, flood insurance requirements are primarily driven by federal law.

If a structure is in an SFHA and the owner has a federally-backed mortgage, flood insurance is required. Lenders are required to obtain a flood zone determination during the loan process. If the determination shows the structure is in an SFHA, the lender must require flood insurance as a condition of the loan. This requirement remains in place for the life of the loan.

Flood insurance must generally cover the structure itself (not just the land) and be maintained at least to the lesser of:

  • The outstanding loan balance, or
  • The maximum coverage available under the National Flood Insurance Program (NFIP).

If a property owner does not have a federally-backed mortgage—such as in a cash purchase or a private loan—flood insurance is not legally required, even if the property is located in a floodplain. However, the risk of flood damage still exists, and standard homeowners’ insurance policies do not cover flood losses. For this reason, flood insurance is recommended. Flood insurance in Oregon is available through:

  • The National Flood Insurance Program (NFIP), administered by FEMA, and
  • Approved private flood insurance carriers.

Most Oregon communities participate in the NFIP, which allows property owners to purchase coverage regardless of whether flood insurance is required. Flood insurance can be purchased for properties both in and outside mapped floodplains.

Properties located outside of an SFHA, labeled “Zone X,” are not subject to flood insurance requirements. However, flooding can occur outside high-risk zones. A significant percentage of flood insurance claims come from these areas, so obtaining flood insurance can be a sensible way of reducing risk to your home. In some cases, a property may be mapped within a floodplain even though the structure itself is built above the Base Flood Elevation. An Elevation Certificate, prepared by a licensed surveyor or engineer, can help determine actual risk and may reduce insurance premiums.

If a property owner believes FEMA maps inaccurately show a structure within an SFHA, they may apply for a Letter of Map Amendment (LOMA). If approved, this can remove the mandatory insurance requirement for federally-backed loans.

While Oregon does not require flood insurance statewide, local jurisdictions must enforce floodplain development regulations as part of their participation in the NFIP. These rules can affect building permits, remodeling, and redevelopment within floodplain areas, but they do not replace federal insurance requirements tied to mortgages.

For properties located in a floodplain in Oregon, flood insurance requirements depend largely on flood zone designation and mortgage type. If a structure lies within a FEMA-designated Special Flood Hazard Area and has a federally-backed loan, flood insurance is required by law. Even when not required, flood insurance remains an important way to protect homeowners against financial loss, as flooding is not covered by standard homeowners’ policies.

Understanding flood risk early, especially during a purchase or refinance, can help property owners make informed decisions and avoid expensive surprises.