People living in high-risk flood areas can experience substantial and costly damage. To protect your home and financials you need to purchase adequate flood insurance. Fortunately, these insurance policies come in all different forms so you can curate and customize one specific to your needs.
In this article, we’ll discuss the cost of flood insurance, as well as the various factors that impact your rates. Let’s get started.
The average cost of flood insurance is $700 a year in the US. This amount varies depending on your location and other factors. Notably, flood insurance is much cheaper for renters, as they only have to protect their personal belongings.
The easiest way to determine your rate is by shopping around and gathering multiple quotes. Of course, everyone’s situation is different, so here are some of the factors that can affect the cost of your flood insurance.
The most important factor any insurance company will consider is the flood risk in your area. Several locations across the country have a higher flood risk, such as near the coast or some other body of water. The higher the flood risk, the more you’ll have to pay. When you shop for flood insurance the insurer will refer to a FEMA map to determine what flood zone you’re located in.
Are you looking for contents coverage, building coverage, or both? The type of coverage you purchase will impact your overall rates. Not opting for contents coverage will save you a lot of money. However, you could be leaving yourself uninsured if a flood ruins a lot of your personal belongings.
Your home’s architecture, construction, and age will greatly affect the cost of your flood insurance. Older houses lack modern construction materials which can be expensive to replace and repair. It can also be difficult to locate the materials to repair the home’s structure.
As a result, you can expect to pay more for flood insurance if you have an older home.
Do you wish to fully insure all your valuable items? If so, your premiums will likely be significantly higher. Keep in mind the more coverage you need, the more you’ll have to pay.
Every insurance company has their own coverage options, limits, and exclusions. They also tend to have very different rates for the same exact coverage.
So, if you want to save some money, it’s best to shop around and compare quotes from several different companies. Evaluate your options to see who has the most affordable policy.
What’s covered in your policy greatly depends on the coverage you choose. As stated above, there are two types you can opt for, building and contents coverage.
Here’s a general breakdown of both flood insurance coverage options:
You can also get coverage for structural damages such as broken windows and doors. Besides that, you’ll also receive compensation to repair your garage, yard, and any other outside structures.
If you want to know the exact cost of flood insurance, you need to contact an agent that specializes in property insurance. They’ll help you decide what coverage you need given your personal situation. This way you’ll receive adequate coverage and be able to mitigate the various risks that exist.
Source
https://www.floodsmart.gov/what-impacts-my-premium-and-policy-costs