How Much Does Flood Insurance Cost

Bay St. Louis, MS, December 11, 2007 -- A resi...

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How Much Does Flood Insurance Cost

How much does flood insurance cost is a little bit like asking the length of a piece of string . . . it depends! On what? Well, I’ll tell you, just for starters:

  • how much flood insurance cover you want
  • the type of flood insurance cover you choose
  • the location of the property (particularly the flood zone)
  • the elevation of the property

If your property is located in a moderate to low risk area (Zone B, C or X) then you will possibly be eligible for a Preferred Risk Policy (PRP) which is the lowest priced flood insurance available and means that prices start from as little as $129 per year. That’s not much to pay out for peace of mind is it?

Flood Insurance Discounts

So what’s the best way to save money on flood insurance costs . . . I mean, it’s okay if we need to have it, but we want to pay as little for it as possible . . . it’s the way of things isn’t it? Discounts might be available if your community participates in a CRS, the Community Rating System. Basically it’s a way that whole communities can get together and recognize the flooding dangers particular to their area and work towards reducing the risk. If you live in an active community which participates in the CRS meeting their three basic goals:

  • reducing the amount of flood losses
  • promoting awareness for the importance of flood insurance
  • making accurate insurance rating information more accessible

then you could be in line for a spot of discount! If your community is not presently involved in the scheme then maybe you ought to bring it to the attention of your neighbors . . . it’s a great way to save a bit of cash whilst reducing the risk of losing your home or valuables to flooding.

Other ways to reduce the cost of your flood insurance premiums is by increasing your deductibles. Think on though, that flood insurance is generally divided into two completely separate parts; building insurance and contents insurance. Deductibles are therefore applied separately so if both your building and the contents are the subject of a claim you’ll have to pay both sets of deductibles.

Flood Insurance policies are often required to be in force for a minimum period of 30 days before they come into force, so it’s really not worth waiting until the heavens open or the snow starts melting on the mountain behind your house before you get the job organized, flooding generally happens quicker than thirty days, often with a minimum amount of warning, so it’s better to get things organized well before-hand.

Flood Insurance policy rates  vary depending on how much cover you need and, as I’ve already said, the risk zone in which you live, and for any accurate figures you really need to speak to your insurance agent.

I wonder how much that lot will cost to put right?

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