Flooding is often thought of as someone else’s problem. We see different events on TV and never think that this will happen to us. Situations like this have been unfolding for Floridians over the last several months.
Many “safe” areas experienced unprecedented flooding and devastation. Those areas that were not supposed to be in danger saw waves of water coming in.
This is changing how hazards are assessed and how flood insurance premiums are calculated. Here is the approach that insurance companies use to decide the risks and the premiums on your property.
The NFIP vs. Private Coverage
The average cost for flood insurance in Florida is $562 per year. This varies among the counties and specific areas you live.
The National Flood Insurance Program (NFIP) is a viable option. But coverage limits don’t exceed those properties worth $250 thousand and beyond.
Private coverage offers you lower rates and more flexibility. You can fill holes for any coverage in the NFIP or compare options. This gives you better choices to get the right solutions for your property.
We recommend looking at both options and seeing which one makes the most sense. You want to look at the premiums, total protection, and for any gaps in coverage. This will help you to find the best flood insurance companies in Florida.
How are the Premiums Calculated?
Insurance companies will look at different factors to decide your rate. Some of the ones they use include building materials, distance to the coast, and the property’s elevation. Depending on where your property is located rates will vary from $190 to $2,000 a month.
Another factor that decides your flood insurance rate is if the property is used as a rental or if you occupy it for less than six months out of the year. You will pay high premiums in these
situations. The costs will vary depending on the area and city. The average costs in Florida’s urban areas are from $389 to $950 per year.
These costs vary depending on where you live. For example, if you live on the coast, this is considered to be a high flood zone. You will more than likely need private coverage and
protection through the NFIP. The property values usually exceed $250 thousand in these areas. You are in a high-risk area for flooding and will pay more in premiums. Someone that lives in an area that is further inland and higher in elevation will be rated lower.
We recommend always getting flood insurance. Even those areas rated as less likely to flood have a 25% high probability of this happening. Flood insurance gives you the protection you need to address any unforeseen events.
Putting It All Together
This is how the insurance company looks at risk to decide the premiums to charge you. Contact us today and let our team explain how these rates are set. We work with all of the flood insurance companies in Florida and know how they assess risk.
Our insights will help you to find the best coverage and rates for your property. This protects you against flooding and it gives you the coverage you need for these events.
FAQs
Do I have to get flood insurance?
Your lender will want you to get coverage from one of the different flood insurance companies in Florida.
Can I compare rates and coverage?
Yes. We can help you to compare rates and coverage among the best flood insurance companies in Florida.
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