Where to Get Flood Insurance
13. NFIP/FEMA is your best bet when living in floodplains
With costs topping $8.2 billion annually, as well as average water damage costs of $27,000 per household, flood insurance policies should be a priority for everyone living in floodplains and high-risk areas. The good news is that the National Flood Insurance Program offers great deals through many insurance agents at low rates.
The affordable plan aims to cover all US households with flood insurance.
14. The NFIP policy covers several items
NFIP flood insurance policies cover the insured building and its foundation along with other items. For example, it covers the costs of water damage done to the electrical and plumbing systems, refrigerators and other kitchen items, as well as permanently installed carpeting, paneling, wallboard, and more.
However, the US government home flood insurance doesn’t cover personal belongings, portable items, and valuable items.
15. NFIP flood insurance rates don’t differ from agent to agent
The NFIP has set a fixed list of insurance rates that are the same across all agencies. Policy premiums include fees and surcharges you should ask your agent about. The amount you pay is based on different factors including the year of the building, the number of floors, occupancy rates, flood zones, and more.
When discussing a flood insurance quote, it’s vital to provide this information in order to see how much the policy will cost. The average policy obtained through NFIP is $699 per year.
16. Private insurance companies sell premium policies as well
Besides the US government, you can buy a premium flood insurance policy from private providers too. The cost is usually higher than NFIP’s policy and this type of insurance isn’t available in all the 50 US states.
The rates are affected by your distance to the water’s edge and not by state borders. On average, the price is over $427 annually in Texas’ B zone and lower; over $2,800 in the A zone, and over $13,000 in the V zone. A flood insurance provider ensures that the policy covers both your building and personal property, unlike the NFIP that requires you to buy two separate policies.
Source: Value Penguin