What You Need to Know About Flood Insurance | How Much Does Flood Coverage Cost?

It’s quite unfortunate that many property owners are unaware that flood protection is not add in their homeowners insurance and must be purchased separately. This page is going to educate you on what you need to know about Flood Insurance.

National Flood Insurance Program Statistics

  • It has been observed in United States that Floods are the #1 natural disaster. Further more, the average flood insurance claim in recent years is $35,000.
  • A total flood insurance claims in the U.S. averaged nearly $3 billion annually from 2002 to 2011.
  • New Jersey is rated the top state in the U.S. for flood insurance claims. In 2011, over $628 million of claims payments were paid in the state.

Do I Need Flood Insurance?

Flooding occurs in almost states in U.S. and is not covered in home or renter’s policies. But the question now is, should everyone have flood insurance? The choice is now yours to your level of risk.

ALSO SEE: How You Can Apply for FEMA Disaster Assistance

According to FEMA, it’s likely that most people need flood insurance to a point. FEMA has flood plain maps for every states in U.S. Furthermore, it lists areas as 10-year, 30-year, 50-year or 100-year flood plains based on the following:

  • Elevation
  • Slope of the land
  • Soil
  • Proximity to water sources and other factors.

What Kind of Flood Insurance Do I Need?

There are several kinds of flood insurance coverage you can purchase. They include:

  1. General Property Policy: It can be used to cover 5 or more family residential buildings and non-residential buildings
  2. Residential Condominium Building Association Policy: This is applied to insure condominiums and townhomes
  3. Standard Flood Insurance Policy – Residence: This coverage is used to insure up to 4 family residential buildings and single family apartment units in a condo/townhouse building.

In addition to standard apartment coverage, you have two options:

  • Building property coverage – up to $250,000
  • Personal property coverage – up to $100,000.

How Much Does Flood Coverage Cost?

Currently, the cost for flood insurance coverage vary greatly from state to state and area to area, and depend on a variety of factors. These factors include flood risk and the value of the home being insured. However, Flood insurance can be as low as $130 per year, for a renewable one-year policy.

SEE ALSO: How To Apply for ACCESS Florida Benefits

Flood Insurance Coverage

Your policy covers:

  • Physical damage to structures affected by flooding from heavy snowmelt, heavy rainfall etc.
  • Damage caused from erosion due to currents or uncommon water cycles.
  • Damage caused by mudflows or mudslides.
  • Ensure you read your insurance documents if you are in a high-risk mudslide area.

Where Can I Buy Flood Insurance?

If your community partake in the National Flood Insurance Program, you can buy your flood insurance policy from a local insurance agent. Furthermore, an agent who lives in your area will have the best information about flood insurance that is specific to your community and as well help determine your need for this coverage.

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