Personal flood insurance is designed to protect your home and belongings (clothing, electronics, furniture, etc.) from damages caused by floods. This type of policy is typically offered separately from homeowners’ insurance policies. Some floods can be more destructive than others, depending on the area where a property is located, among other factors. Here is a close look at this subject and how much does flood insurance cost.
Factors That Determine Flood Insurance Cost
According to the National Flood Insurance Program (NFIP), flooding is involved in 90 percent of all natural disasters that occur in the United States. These disasters often result in billions of dollars in losses each year. There are five factors that generally impact the cost of flood insurance. Let’s analyze each of these factors.
Flood Risk
The primary factor that influences the flood insurance premiums you pay is your home’s level of flood risk. This mostly depends on where you live. In order to discover the flooding risk in your area, you can look at the Federal Emergency Management Agency’s (FEMA) flood maps.
Home Location
You will normally pay more for flood insurance depending on your home’s location. If your property is situated near a body of water such as a river or lake, your flood insurance premiums will likely be higher. This includes shorelines and coastal regions, where strong tides and winds can often easily sweep seawater.
Home Age And Condition
Given that older homes were often constructed using rudimentary techniques and materials, they are generally at higher risk of flooding. If your property is in good condition, however, (e.g. walls are not peeling and there is no mold or plumbing or electrical issues) you may ultimately pay a relatively low rate for flood insurance.
Type Of Coverage
Your flood insurance costs will also vary depending on the type of coverage you desire. If you only wish to purchase basic coverage, your premiums will be low. However, if you want your policy to cover valuable possessions such as artwork and jewelry, you will likely pay higher rates. (The NFIP provides up to $2,500 in coverage for valuable items.)
Deductible And Coverage Limit
Insurance companies frequently allow customers to choose the coverage limits and deductibles for their policies. Nevertheless, you should keep in mind that the most expensive policies typically carry a low deductible and high coverage limits.
Most Expensive States For Flood Insurance
Data compiled by FEMA reveals that the five most expensive states for flood insurance are (by average cost):
- Connecticut ($1,394.83)
- Virginia ($1,31.24)
- South Carolina ($1,389.22)
- Michigan ($1,251.25)
- Rhode Island ($1,175.58)
This is not surprising, since all of these states are located near large bodies of water (four of them are on the East Coast) and are prone to hurricanes.
Least Expensive States For Flood Insurance
The following five states have the lowest flood insurance rates, on average:
- Georgia ($550.33)
- Massachusetts ($572.91)
- Utah ($581.11)
- Maine ($664.43)
- Vermont ($653.78)
Although some of these states are situated in coastal regions, all of them have low flooding risks.
It’s also important to remember that personal flood insurance policies do not typically cover things (such as sewer backups) that are not directly caused by flooding or outdoor property (such as landscaping) and vehicles. However, detached garages, fuel tanks, and water pumps are covered.
Homeowners often cite a variety of reasons for not having flood insurance, including the fact that it is too expensive and that they do not believe they are at significant risk of flooding. However, this type of protection is ultimately worth the cost, so be sure to purchase a policy today.
Get Flood Insurance From JMG
Reach out to the professionals at JMG Insurance Agency for more information about personal flood insurance and its benefits. Since our founding in 1916, we have been dedicated to serving the insurance needs of clients throughout Connecticut, New Jersey, New York, Massachusetts, and Hawaii. As an independent agent, we collaborate closely with several insurance providers that have proven their reliability throughout the years.
Flooding is one of the most common natural disasters that affect homes in the U.S. Therefore, it’s imperative to acquire a flood insurance policy. At John M. Glover, we can customize policies to meet your unique needs. However, most policies include both building coverage (for your home’s foundation walls and electrical and plumbing systems, among other things) and contents coverage (for your personal possessions such as clothing, furniture, electronics, portable air conditioners, and valuable items).
Call JMG today at (844) 304-7332 or contact us online to learn more about our flood insurance policies.