What to Know About Flood Insurance Premiums

Flood damage can be devastating, but it isn't covered by standard home insurance. The only way to protect yourself against flood damage is with a separate policy. Don't assume you can't benefit from flood coverage if you don't live in a high-risk area; floods can occur anywhere, and they are increasingly occurring in areas that are considered low risk for floods.

If you are considering buying flood coverage through an insurance agency in Jacksonville, it's important to understand how premiums and coverage work because flood coverage works differently than home insurance.

How Flood Policy Premiums Are Calculated

There are many factors that determine the premiums you pay for flood coverage. The most important factors are the amount of coverage you choose and your home's flood risk or which flood zone your home is located in. There are other factors that can influence your premiums, such as the size of your home, whether you have a basement, and the age of your home.

Federal vs. Private Flood Coverage

There are two types of flood coverage: insurance purchased through the National Flood Insurance Program (NFIP) and private policies purchased through a home insurance agency. Premiums through the federal program are based on standard rates depending on your home's value and whether or not you are in a floodplain, and these premiums tend to increase significantly over time.

Under the federal program, you can get up to $250,000 in coverage for your home and up to $100,000 in coverage for your contents. If your home is worth $300,000 and you suffer a total loss, you can only recover $250,000 through the program for the structure.

Private flood coverage allows you to increase your coverage limits, which is an option not available with federal flood coverage.

Switching to Private Coverage

If a federal flood policy is too expensive or does not offer enough coverage, you may want to consider a private flood policy. If you already have federal coverage, the private policy will essentially cover flood damages that exceed your existing policy.

Many homeowners in Jacksonville can save money by buying flood coverage on the private market through their insurance agency. You can see the greatest savings if you live in a low-risk area for flooding or you are a part-time resident.

If you are considering buying flood coverage, you have many options to get the policy you need. Contact the Della Porta Group to learn more about covering your home against flood damage.