Are you wondering how expensive is flood insurance? If yes, you should check out our guide here detailing the average prices of flood insurance.
Did you know that 14.6 million homes are at risk of flooding nationally? With so many homes living with the risk of dealing with the aftermath of a flood, you might be wondering how expensive is flood insurance?
Keep reading to learn the average prices you can expect to pay for this coverage.
Average Cost
The truth is that the cost of flood insurance will vary based on where you live. If you live in an area that is prone to flooding or if you live in an area that is affected by hurricanes then your flood insurance will be much higher than an area that is not prone to flooding.
The average cost of the National Flood Insurance Program (NFIP) is $700 according to FEMA. Once again your cost might be higher or lower based on the type of coverage you choose, the age of your home, and the location.
If you opt for private flood insurance instead of NFIP because you want more coverage then your rates can vary between $400 to $14,000. The price will depend based on the flood zone they categorize your home to be in and the amount of coverage that you choose to have.
This article will help you figure out private flood insurance vs NFIP. There are pros and cons to both options. In some cases, private insurance companies might choose to not renew your policy if they feel that your home is too risky. With NFIP you won’t have to worry about them canceling your policy because this is a federally regulated program.
Lowering Your Rates
Everyone wants to save money and there are a few different ways to lower your flood insurance rates. The most obvious way to lower your rate is to relocate to an area that is above Base Flood Elevation (BFE).
This by itself can make a drastic difference in how much you pay. If you can’t move then you can look into having a contractor retrofit your home to make it above BFE.
Another option is to move your utilities to higher ground or into a shed of its own with extra protection against flooding. Items such as your water heater, plumbing, electrical, and ventilation systems will cost the insurance company a lot of money to replace or repair. If you can show them that they are less likely to be damaged because of a modification you did, they will take that into consideration when they quote you your insurance rate.
Now You Know How Expensive Is Flood Insurance
Now that we answered the question “how expensive is flood insurance?” you can make sure that you calculate this extra cost into your monthly expenses. If you live in an area that is prone to flooding, you do not want to go without this coverage because you never know when you will need it.
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