Rates for NFIP insurance are determined by FEMA and are relative to the location and relative risk of flooding for a certain property. However, in 2019, the typical NFIP policy yearly premium was close to $700.
Fortunately, there are things you can do to reduce the likelihood of flooding at your home and earn a reduction on your insurance premiums. These are some of the ways in which danger can be mitigated:
Raise your utility rates. If utilities are moved from the basement or ground level to the attic or a raised platform, they will be safer against water damage.
Cut off passageways for water in the event of a flood. Flood apertures, or vents that enable flood water to pass through, are essential in a basement or other totally enclosed room below the lowest elevated floor to prevent pressure building that can collapse the walls and foundation.
Level off basements. In high-risk flood zones, flood insurance premiums for homes with basements are generally 15% to 20% more than premiums for those without basements. Your insurance price can go down quite a bit if you fill in your basement.
Put your house on a higher level. To lessen the likelihood of flood damage and insurance costs, consider raising your home’s foundation above the community’s base flood level.
Remember that these upgrades can be pricey, so talk to your insurance provider about the best ways to lower your flood risk and the money you can expect to save as a result.
Get rates from the NFIP and private insurance carriers if you need flood insurance to fulfill your mortgage lender’s requirements, or if you just want the piece of mind that comes with knowing you’re insured in the event of a flood.
More than 50 insurance companies participate in the NFIP, and NFIP Direct offers insurance through the program as well. You may either contact your current insurance agent or use the NFIP website to locate an insurance company.
Keep in mind that the NFIP’s maximum coverage amounts are $250,000 for the structure itself and $100,000 for its contents. Depending on the price tag attached to your possessions, these caps might be insufficient. If that’s the case, you may need to get a separate private flood insurance policy to provide complete financial security.
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