Flood Insurance Quotes

NFIP Flood Risk Rating 2.0 – What it Means for You

Flood Insurance Coverage for Your Home

A standard home insurance policy offers protection against many water-related risks, such as spills and overflows. But a standard policy does not protect against floods.

You can think of a flood as water that touches the ground before it enters your home.

If your home is at risk from flooding or your lender requires flood insurance, a dedicated flood insurance policy can offer more comprehensive protection for your home and belongings.

Today’s market brings more options for flood insurance:

• FEMA-backed NFIP flood coverage: The national flood insurance program (NFIP) remains the largest flood insurance provider in the nation. An NFIP policy backed by the Federal Emergency Management Agency (FEMA) can protect your home and belongings subject to the policy limits you choose.

• Private-market flood insurance: Several private-market insurers started offering flood coverage as an alternative to NFIP coverage in recent years. In some cases, these private-market options offer lower premiums, higher coverage limits, or more comprehensive coverage when compared to NFIP policies.

• Excess flood insurance: An excess flood insurance policy can extend the coverage limits of an underlying NFIP or private market policy. Because an excess flood policy acts as secondary coverage and sees fewer claims, protecting your home to its full rebuild value becomes more affordable.

What Does Flood Insurance Cover?

A standard flood insurance policy offers two primary coverages against flood risks.

• Building coverage
• Contents coverage

Building coverage for your home protects the building itself as well as attached fixtures, plumbing and electrical systems, furnaces and water heaters, carpeting and flooring, and more.

Your building coverage also protects detached garages and solar energy equipment. Refrigerators, stoves, and built-in dishwashers fall under this coverage as well.

Contents coverage offers protection for your belongings. This coverage includes clothing, furniture, electronics, and detached appliances, such as washers, dryers, and microwaves. You’ll also find limited coverage for valuables, including artwork and furs.

Flood insurance works in tandem with a well-designed home insurance policy to provide coverage that isn’t available with standard home insurance policies. This add-on approach helps keep the cost of homeowners insurance more affordable. If a specific property requires flood coverage, flood insurance is always available as a separate policy through the NFIP. Several private market insurers now also offer coverage in many areas.

Can I Get Flood Insurance for a Condo or an Apartment?

Renters and condo owners can purchase flood insurance as well. The NFIP offers up to $100,000 in contents coverage for renters. Because the policy does not insure the building itself, flood coverage for renters can be more affordable when compared to premiums for a single-family home.

For condo owners, the condo association may carry flood insurance for the building, called a Residential Condominium Building Association Policy (RCBAP). The RCBAP protects the building, common areas, and individual condo units. However, this coverage does not insure your belongings. You can purchase flood coverage for your belongings through the NFIP or a private market provider, much like a renters flood insurance policy.

Should I get NFIP Flood Insurance or a Private Market Policy?

Until recently, homeowners and renters had few options for flood coverage, with the NFIP being the only choice in some areas. With improved mapping and technology advances, insurers now better understand flood risk. These changes brought several new providers into the flood coverage market.

In many areas, you’ll have a choice between an NFIP policy or a private market policy. For some homes, a private market policy may offer the best solution. Our experienced advisors walk you through your options so you can compare rates and policy options.

A private market flood insurance policy can bring several benefits:

• Lower premiums: In many cases, a private market flood policy can cost less than an NFIP policy.

• Higher coverage limits: NFIP policies cap building coverage at $250,000 and contents coverage at $100,000. Some private market policies offer higher coverage limits, allowing you to protect your home’s full rebuild value.

• Seamless coverage for flood risks: Flood definitions for NFIP policies can leave potentially costly gaps in coverage. Some private market policies offer broader coverage that dovetails with your standard home insurance coverage seamlessly, eliminating these coverage gaps.

• Wide acceptance by lenders: Government-backed home loans typically require flood insurance for high-risk properties. Several private market insurers offer policies that work as a plug-in replacement for an NFIP policy, ensuring broad acceptance with home lenders.

NFIP flood insurance policies still play an important role in protecting homes. Many homeowners in at-risk areas choose an NFIP policy as their base coverage and then supplement coverage with an excess flood insurance policy that offers higher coverage limits.

Reach out Today to Compare Flood Insurance

Give us a few minutes to learn about your flood insurance needs. We’ll take it from there. Our independent insurance advisors can provide multiple quotes from leading insurers in just minutes and with no obligation.

Each home has unique coverage needs, and flood insurance can be challenging to understand if you don’t read insurance policies every day. We’ll explain your coverage options in plain language so you can make an informed buying decision.

For most households, the family home is the largest single purchase they will ever make. Let the experienced insurance advisors at Coastal Insurance help you protect your home against flood risks at the best price possible.

National Flood Insurance Rate Changes 2022

Can you shop around for flood insurance?

Not only is it important to secure flood insurance for your home, it also to critical to compare flood insurance quotes to find a policy that fits your unique needs.

While the National Flood Insurance Program (NFIP) represents the largest provider of flood insurance nationwide, there are many private market flood insurance companies that also offer flood insurance coverage. The private flood insurance market is relatively new to the insurance industry (last 5 years).  Many homeowners are not aware of the option.  These private market insurers offer many reasons to consider comparing quotes. High among these reasons are higher limits, lower rates, and seamless coverage that pairs well with other insurance policies.

NFIP policies exist to ensure universal access to flood insurance. As a trade-off, coverage limits for buildings and property are often low. In the event of a complete loss, many NFIP policyholders could still have a significant coverage gap. Many private flood policies offer higher coverage limits than the NFIP, providing additional protection for your home.

Technology advancements like artificial intelligence and advanced mapping assist private flood carriers with offering additional policy features at lower rates.  Neptune offers enhanced coverage that can save up to 25% of your premium, for the same coverage as your NFIP policy, thanks to the use of their advanced technology.

Amongst the private market flood insurers, its critical to compare quotes from multiple carriers as the coverage and rates will vary based on your home, and how the algorithms determine your risk for flooding. Here, at Coastal Insurance Solutions we offer an online quote platform for private flood insurance that enables you to compare up to 10 rates from leading private market flood insurers in less than 3 minutes.

Save money and enjoy better protection for your home and belongings. Simply enter your address and a few details about your home and you will be comparing the best flood insurance quotes in minutes. Our team of state-licensed flood insurance advisors are on standby to help you find the coverage that you need at the best possible rate.

Related: Neptune Flood Insurance (Private) vs. FEMA’s National Flood Insurance Program (Public)

How much is flood insurance?

Based on nationwide estimates from Neptune Insurance, flood insurance coverage costs an average of $82 per month or $985 per year. Flood insurance premiums vary greatly depending on many factors, including property location, flood zone, policy limits, and the desired deductible.

Customize your coverage limit to match your needs.  Many private flood insurance policies can offer endorsements that compliment your home insurance policy, patching troubling and potentially costly coverage gaps often seen with standard NFIP policies.

Remember that the cost of flood insurance can vary depending on the location and the level of risk. Because of this, the cost of flood insurance can be lower (or higher) than most would expect for homes outside of special flood hazard areas. With Coastal Insurance, you can see for yourself how much it would cost to secure your home with flood insurance in less than 3 minutes with our online quote platform. Simply enter your address and a few key details about your home and we will do the rest. We make it easy to consider all your options and find the fit for your unique needs.

Where can I get flood insurance?

Public flood insurance is purchased through the NFIP — a government program administered by FEMA. The program was created to increase the availability to help people living in high-risk flood zones get insurance. However, any program designed for the masses is not going to be right for everyone. With the rating change to NFIP 2.0, those who had favorable rates could see an increase. Additionally, those who might expect a favorable rate may be surprised to see a rate that is higher than expected.

In contrast, private flood insurance is purchased through a private insurance company that is not backed by the federal government. The rating methodology for private flood insurers is different than that of the NFIP and so some might find a more favorable rate by quoting with a private insurer like Neptune Insurance. Private Flood Insurers use computer generated algorithms to determine flood insurance rates.  In some cases, private flood insurance can save homeowners 50% or more compared to FEMA’s flood insurance rates. Perhaps one the greatest benefits is the ability to customize. The private flood insurance provider Neptune allows a suite of customizations so that policies meet the unique needs of its customers instead of a one size fits all solution.

If you have questions about your home and flood coverage, we recommended speaking with our team of state-licensed insurance advisors to learn more about home and flood insurance packages.  With Coastal Insurance Solutions, our advisors will partner with you to tailor a package to your unique needs and compare quotes from the finest insurance companies.

What is the lowest deductible for flood insurance?

 With the NFIP, $500 is lowest deductible for building coverage limits of $100,000 or less. $500 is also the lowest deductible the NFIP allows for contents coverage. Separate deductibles are typically set for building and contents coverage respectively. This means that if your building and contents are both damaged due to a flood event, both deductibles are applied.

Will almost all insurance products, a higher deductible will lower the premium you pay but will also reduce your claim payment, meaning you will need to cover the difference out of your own pocket.

Increasing the deductible on a NFIP insurance policy to the $10,000 maximum could reduce the annual premium by up to 40%. The maximum deductible might not be appropriate in all circumstances and may not be allowed by lenders to meet purchase requirements.  Often a lender may set a maximum amount for your deductible.

Private market flood insurance policies offer more control over your deductible. You can choose a higher deductible to reduce premiums or a lower deductible to reduce your out-of-pocket risk. Private market flood insurers can offer a $2,000 or a $5,000 deductible for building and contents coverage respectively.

What is the difference between FEMA and NFIP?

FEMA (Federal Emergency Management Agency) is the government agency that is coordinates disaster response efforts. The NFIP (National Flood Insurance Program) is a government program that offers flood insurance to owners of property. FEMA administers the NFIP program and is responsible for setting rates and floodplain management regulations.  Essentially, the NFIP is a program that is administered by FEMA.

FEMA’s National Flood Insurance Program (NFIP) still serves as the base policy for most homes insured for flooding. The public program actively insures 3.4 million homes and covers 91% of the flood policies in the United States. For decades, flood insurance was considered too big a risk for most insurers, leaving homeowners with few options. With nearly 75% of declared disasters in the U.S. involving flooding and most flood-related risks not covered by standard homeowner or business insurance policies, the market gap left millions of property owners without viable coverage options. The NFIP was created in 1968 to address this market gap and offer universal access to flood coverage for U.S. homeowners and businesses.

What structures are not covered by flood insurance?

Flood Insurance from the National Flood Insurance Program (NFIP) does not cover structures that are not permanently attached to your home such as a garage, pool house, or shed, grills and pools. Your flood policy will also likely not cover damage to landscaping or outdoor furniture.

The NFIP specifically excludes coverage for swimming pools. However, private market options like Neptune will cover swimming pool repair & refill costs up to $10,000 if that coverage extension is chosen. Additionally, Neptune offers up to $50,000 in optional coverage for unattached structures.

Related: Flood Insurance: Expect the unexpected with both a policy and plan

Can I get insurance in a high-risk flood area?

While the cost of flood insurance in high-risk areas may be greater than in low-risk areas, flood insurance coverage can certainly still be secured. In fact, properties located in high-risk flood areas are required to have flood insurance if they have a mortgage from a federally regulated or insured lender.  In high-risk flood areas, mortgage companies require homeowners to purchase and maintain flood insurance as a condition of the mortgage.

It’s important to remember that floods can happen anywhere without warning. According to the National Flood Insurance Program (NFIP), over 20% of flood claims come from properties outside of high-risk flood areas. Therefore, it’s important for homeowners to consider purchasing flood insurance, even if it’s not required by their mortgage company.

Does flood insurance pay actual cash value?

A flood insurance policy obtained from the National Flood Insurance Program (NFIP) will pay actual cash value for contents and replacement cost at your primary residence.  Actual cash value considers the depreciated value of property at the time the loss occurred. Replacement cost coverage eliminates depreciation from the equation, providing repairs and materials as if they were purchased new in today’s dollar.

What is the most flood insurance you can get?

A flood insurance policy splits your home’s building coverage and contents into two primary coverages against flood risk. Below is an example of how private market flood insurance coverage limits compare to a policy with the NFIP:

Contents

• The NFIP provides up to $100,000 in actual cash value coverage
• A private market flood insurance policy can provide coverage up to $1,000,000.

Building

• The NFIP caps coverage at $250,000 for single-family homes.
• A private market flood insurance policy can provide coverage up to $4,000,000.

Building coverage for your home protects the building itself as well as attached fixtures, plumbing and electrical systems, furnaces, and water heaters, carpeting and flooring, and more. Your building coverage also protects detached garages and solar energy equipment. Refrigerators, stoves, and built-in dishwashers fall under this coverage as well.

Contents coverage offers protection for your belongings. This coverage includes clothing, furniture, electronics, and detached appliances, such as washers, dryers, and microwaves.

Does homeowner insurance cover a flooded basement?

 Basement flooding is covered in some cases by your standard home insurance policy. If the flooding was caused by a burst pipe, plumbing issue, broken appliance, or an overflowing tub in your home, there’s a good chance you’ll have coverage. However, if the flooding is the result of rising waters from a storm surge or heavy rains, that is excluded from a standard home insurance policy. Protection from floods caused by mother nature needs to be secured with a flood insurance policy.  Always check with your agent to review specific coverages provided by your policy.

Even with flood insurance in place, it’s best to remove your contents from the basement ahead of a flooding event. This is because only things like your HVAC systems and your electrical systems are typically covered under a flood insurance policy. Personal belongings and contents that are stored in the basement, such as furniture, clothing, and other items, are not typically covered. The National Flood Insurance Program (NFIP) only covers limited basement contents, such as wall fixtures, elevators, air conditioners, and washer/dryer.

Related Video – Expect the unexpected with both a policy and plan

Does homeowner insurance cover foundation water leaks?

To determine if foundation water leaks are covered under your home insurance policy, it is critical to find the root cause of the leak. Water leaks from the foundation of your home are typically not covered unless the cause of leak was caused by a named peril on your policy. Many of the most common instances of foundation leaks or seepage are caused from settling, age and wear tear which are likely not covered.