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SFHAs, also known as Zone A or VE, are areas with a 1% annual chance of flooding, and properties in these areas are required to have flood insurance if they have a mortgage from a federally regulated lender. Moderate-risk areas, also known as Zone B or X, have a 0.2% annual chance of flooding, and while flood insurance is not mandatory, it is still recommended. Low-risk areas, also known as Zone C or X, have a minimal flood risk, and flood insurance is not required.