09 Apr Affordable Flood Insurance
Homeowners across the nation are faced with a variety of costs necessary to maintain the home, protect the home, and stay current with state and local taxes. One of the more important costs associated with home ownership is insurance. Many homeowners have a standard policy in place to protect against damage to the home, the items inside, and all the occupants and visitors therein; but many homeowners do not have a flood insurance plan, either because they are unaware of the need for such a plan or are hesitant to pay for additional policies.
Once a homeowner is aware for the need of flood insurance, how can this important policy be put in place in a way that is affordable? First, home owners should be aware of the market. Flood insurance policies for primary residential properties are almost exclusively offered through the government, via the National Flood Insurance Program (NFIP). This means that comparison shopping between many different local and national insurance agencies is not necessary, as most will be offering the subsidized policies offered by the NFIP.
Second, homeowners looking to keep their flood insurance premiums at an affordable rate may want to consider if there are improvements or modifications they can make to their home that will result in a decrease of their premiums. The Federal Emergency Management Agency (FEMA) has specific guidelines for homeowners that explains what can be done to ensure that the home is better protected against flood damage and results in lower premiums. Premium-reducing modifications can be as significant and extensive as elevating the entire house on risers or as simple as placing the heating and cooling units for the home on platforms that are several feet off the ground. For home buyers who have not yet purchased or built their home, FEMA recommends buying or building a home in a location that is well away from the floodplain for the most affordable flood insurance rates.
Lastly, homeowners can spend some time searching for the few flood insurance policies that are offered by a small, but growing number of private sector insurance agencies. These policies are underwritten by well-respected agencies and are offered through several different programs, including the National Catastrophe Flood Insurance Program (NCIP). Programs such as the NCIP can offer a more comprehensive protection policy that is more affordably priced than the government-subsidized programs. The private flood insurance market is very small at this time, with only specific regions of the United States currently covered by these private policies. Homeowners in high-risk flood areas may be able to find affordable coverage by seeking out the insurance agencies who are offering private policies.
While it is yet one more cost to add to the price of owning and maintaining a home, a flood insurance policy is a very important investment for nearly all homeowners, and especially those who live in areas known to be at high-risk for flooding. With some amount of research, homeowners can find a plan that is affordable for them.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.
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