In 2019, 400 counties applied for disaster funds after severe flooding. Some regions suffered over $2 billion in damages. Without extra funding, it could take 25 years to recover from these floods.
Save yourself some heartache by buying flood insurance. Even if your house isn’t at risk, it could suffer flood damage. 25% of insurance claims come from homes in low-risk flood zones.
What is the average cost of flood insurance? That depends on details like the distance to the closest river. There are also tricks to lowering your flood insurance cost.
Grab a notepad, a pen, and some coffee. It’s time to calculate how much you could pay for flood insurance.
What Are National Flood Insurance Costs?
Regular home owner’s insurance doesn’t cover flooding from a natural disaster. To fill the need, homeowners instead turn to the National Flood Insurance Program. This program ensures fair rates nation-wide and prevents predatory insurance policies.
How much is the premium for the NFIP? The average cost of flood insurance through the NFIP is around $700. That price is for a typical home in a higher-risk flood zone with standard deductibles.
States in the Northeast and Midwest cost twice as much for NFIP policies. If your state is Vermont, you could pay over $1,450 for flood insurance. In contrast, the cost of flood insurance in Florida is $560 a year.
What About Private Flood Insurance?
The average cost of private flood insurance depends on your FEMA-designated flood zone. The easiest way to find your flood zone is to use the FEMA Flood Map Service.
Flood zones A and V are the most at-risk. Zones B, C, and X are low-risk flood areas. Keep this in mind when discussing a premium price with a private flood insurance company.
Within one state, there could be multiple flood zones. Someone living in zone V in Texas will pay $13,580 a year. A Texas resident in zone B may pay only $430 per year.
Tricks to Help Lower the Cost of Flood Insurance
When you sign up for flood insurance, you need to agree to a deductible. The deductible is an amount of money you’re willing to pay to restore flood damage. Your flood insurance policy covers the rest up to a set amount.
Raising your policy deductible lowers your annual premium cost. Note that mortgage lenders frown on high deductibles. If you’re still paying off your home, go for deductibles closer to $2000.
If you live in a low-risk flood zone, you might be eligible for a Preferred Risk Policy. Homeowners in these flood zones pay anywhere from $115 to $440 a year.
The Average Cost of Flood Insurance Is Worth It to Protect Your Home
Storm season is stressful enough without worrying about rebuilding a home alone. Flood insurance is one more way to ensure your home survives to pass onto your grandchildren.
The average cost of flood insurance stays low, thanks to the NFIP. Homeowners can rest easy knowing that for around $700 a year, their home is protected.
Your yearly payment provides $250,000 in coverage for your home. It also gives you $100,000 in coverage for items inside the house. Your little bit of money goes a long way toward keeping your home safe.
Need help managing your annual insurance budget? Check out our Finances section. We’ve got tons of tips to get you on the right path.
