How much does flood insurance cost?
The average premium for a standard flood policy is $557 per year. But remember, you could qualify for a Preferred Risk Policy and pay as little as $119 per year. (Refer back to “What flood zone am I in?” for average costs per zone.)
Still, it’s hard to see the value of a policy until you actually compare it to the price of flood damage. See for yourself:
Flood Damage Repair Estimate
| Remove debris | $1,500 |
| Replace carpet | $15,500 |
| Replace drywall/paint/wallpaper | $6,500 |
| Repair cabinets | $4,500 |
Estimated Flood Damage Total $28,000
Average Annual Flood Insurance Premium $557
A disaster loan of $28,000, which is repayable with interest, would cost more than $1,550 a year over 18 years – in addition to your existing mortgage payments. Plus, if you receive disaster assistance, you must purchase and maintain flood insurance to receive further assistance.
What are the coverage limits of a standard flood policy?
The maximum coverage on a standard flood policy is:
| Single-family home structure | $250,000 |
| Single-family home contents | $100,000 |
| Renter contents | $100,000 |
(See how you can increase your coverage under “When is a standard flood policy not enough?”)
In the event of damage from flooding, your claim is paid regardless of whether or not a disaster is declared by the President. And a portion of your claim can be paid immediately to speed the recovery process.
What can a flood policy cover?
- Flood debris cleanup
- Structural damage (walls, stairways, ceilings, floors)
- Household appliances damaged by floodwater (refrigerators, air conditioners, heat pumps, circuit breaker boxes, washers/dryers)
- Wall-to-wall carpeting, tile and other flooring surfaces
What can contents coverage include?
- Furniture (beds, couches, dressers, entertainment centers, tables)
- Collectibles, artwork, knickknacks
- Clothing, shoes, accessories, jewelry
When is buying flood insurance required by law?
If you have a federally-backed mortgage on a home located in a high-risk zone, federal law requires you to purchase flood insurance to secure a loan.
Also, if you’ve received a federal grant for previous flood losses, you must have a flood policy to qualify for future aid.
Why is my friend’s rate higher than mine?
Lots of factors determine flood insurance rates. These include:
- Flood zone
- Amount of coverage
- Location of structure
- Age and design of structure
- Building occupancy
- Structure elevation if located in a Special Flood Hazard Area