NON-SFHANon-Special Flood Hazard Area
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(5) If the residence is located in a non-SFHA (as defined by FEMA) then the rebate is only 5 percent for classes 9 to 1.
We find that on average the claim rate is higher than the 1 percent level FEMA uses in both SFHAs and non-SFHAs. The claim rate is not always higher in SFHAs than in non-SFHAs.
The lower number of claims from non-SFHAs reflects the lower take-up rate for flood insurance outside 100-year floodplains, as mentioned earlier.