Georgia Property & Casualty Practice Exam

What type of area has a 1 percent chance of flooding in any given year?

1. on the seacoast

2. on a riverbank

3. in a special flood hazard area (SFHA)

4. in a participating town (PT)

The correct answer is: in a special flood hazard area (SFHA)

A special flood hazard area (SFHA) is designated by the Federal Emergency Management Agency (FEMA) and represents regions that are at greater risk of flooding. Specifically, an SFHA is defined as an area where there is at least a 1 percent chance of flooding in any given year, commonly referred to as the "100-year floodplain." This statistical measurement indicates a significant likelihood of flooding, which is essential for determining insurance requirements and construction regulations in those areas. Understanding the context of an SFHA is critical for property owners and developers, as these zones necessitate specific floodplain management standards and often require flood insurance when properties are located within them. Awareness of these risks contributes to better preparedness and risk mitigation strategies. Other options provided refer to different contexts of flood risks. Areas on the seacoast, while prone to flooding, do not specifically indicate a 1 percent annual risk without additional details on their classification. Locations on a riverbank can also have varying risks depending on the river’s characteristics and flood history, which is not confined to the 1 percent chance. Similarly, the term "participating town" does not inherently imply flood risk; it refers to towns that participate in the National Flood Insurance Program (NFIP) but does not