Don't Get Caught in a Flood
Insurance
Many people don’t know that standard homeowner’s insurance policies do not cover floods. When floods do hit, the resulting damage can be catastrophic and therefore insurance companies deem it too big of a risk to cover. As a result, the federal government offers flood insurance which can be purchased through most major private insurance companies and property insurance agents.
As of April 1st, 2017, average flood insurance policy premiums offered through the National Flood Insurance Program (NFIP) increased by an average of 6.3%, from $827 to $878. Also, premiums for properties in high-risk areas and secondary residences are set to see higher than average increases ranging up to 25%. This is due to the fact that over the past few years there have been multiple storms that have caused large amounts of damages which have strained the finances of the NFIP program and they are now adjusting the premiums to more accurately represent the possibility of loss.
While flooding can be rare depending on where you live, according to FEMA, over 25% of the NFIP claims are for buildings outside of normal flood plain areas. If a flood does occur, the damage can vary greatly based on the severity of the flooding. For 1-4 inches of water, the estimated average damage is $7,800, while for 18 inches or more the estimated cost is over $25,000 on top of the costs of replacing your possessions.
The cost of flood insurance varies based on your specific area and the proximity to bodies of water. For more information about flood insurance and your specific risk for experiencing a flood, visit the FEMA website and do a search for your address to find your flood map and then use your flood map to find detailed information about your assessed chance of flooding.
To read more about this flood insurance rate hike, visit this NYT article.
As of April 1st, 2017, average flood insurance policy premiums offered through the National Flood Insurance Program (NFIP) increased by an average of 6.3%, from $827 to $878. Also, premiums for properties in high-risk areas and secondary residences are set to see higher than average increases ranging up to 25%. This is due to the fact that over the past few years there have been multiple storms that have caused large amounts of damages which have strained the finances of the NFIP program and they are now adjusting the premiums to more accurately represent the possibility of loss.
While flooding can be rare depending on where you live, according to FEMA, over 25% of the NFIP claims are for buildings outside of normal flood plain areas. If a flood does occur, the damage can vary greatly based on the severity of the flooding. For 1-4 inches of water, the estimated average damage is $7,800, while for 18 inches or more the estimated cost is over $25,000 on top of the costs of replacing your possessions.
The cost of flood insurance varies based on your specific area and the proximity to bodies of water. For more information about flood insurance and your specific risk for experiencing a flood, visit the FEMA website and do a search for your address to find your flood map and then use your flood map to find detailed information about your assessed chance of flooding.
To read more about this flood insurance rate hike, visit this NYT article.