Most, if not all flood policies, are written by the National Flood Insurance Program. In recent months, there have been a few private insurers that have started to offer policies outside of the NFIP. So far, the cost has been about 30% less than a standard NFIP quote.
This has helped homeowners lower their monthly cost by being able to take advantage of these lower rates. FEMA has announced that they are going to rezone properties in the next few months. If the zone changes are unfavorable there will be a large number of homeowners looking to obtain a private flood quote at renewal.
In that case, homeowners will have to wait until their renewal to change their policy, as the NFIP is no longer issuing refunds for midterm changes.
If you’re not in a flood zone and your bank doesn’t require you to have a policy, it still suggested having a policy. More than 20% of flood claims come from properties outside of a high-risk flood zone. If you’re not considered to be in a high-risk zone, a policy can cost as little as $40 per month. Rates may differ based on the age of the property, the flood risk, the deductible and amount of coverage. Since flood insurance rates are set by the government, they will not vary by the insurance company. You should contact your insurance agent for pricing that meets your specific needs.
Click here for a chart that reflects the amount of water versus the cost to repair your home or replace your personal property. For example, if you had 1 inch of water in your home, it would result in over $25,000 in damages. The Estimate Flood Loss Potential chart is a good indication of the minimum amount of coverage you should have.
Flood Insurance can help you avoid the financial consequences of a flood and give you peace of mind. Contact us today and we can review your flood zone and provide a free quote.