As winter sets in, weather concerns will often plague homeowners and investors. Snow caving into rooftops creates water damage, or rising river waters potentially flood nearby homes, for example. If you’re a property owner, flood insurance is a smart way to protect your investment from devastating natural disasters.
Educate yourself about flood insurance and its costs so that you can be prepared this winter.
How Much Does Flood Insurance Cost?
On average, flood insurance costs about $700 on an annual basis, according to the National Flood Insurance Program. Your flood insurance quote is based on several factors, however. Every building is unique to its location, construction and features. An insurance agent should visit the property and evaluate it before offering any costs. Agents will walk inside and outside of the home and form the most accurate flood insurance quote. Avoid any companies that quote you any prices over the phone. These costs aren’t accurate compared to your property type.
Understanding Risk Areas
Every region has a different flood risk associated with it, including low-, moderate- and high-risk designations. How much does flood insurance cost? It depends largely on your location. If you’re on low ground down the length of a major river, your risk type might be high. As a result, your insurance costs will be higher than the average.
Deciding Between Policies
You might be concerned about costs being too high for your budget, but there is some breathing room within these policies. There are several policy types, including building and contents or contents only. If you have a furnished rental property, you want to cover it with a building-and-contents policy. For a more budget-friendly option, cover the property with contents only.
Condominiums Versus Single-Family Homes
If you own a condominium, some flood insurance might be covered by a blanket policy within the neighborhood association. In most cases, you’ll want a separate policy for your unit. Single-family homes must have their own policies regardless of the association in the neighborhood. There are no blanket policies for single-family homes.
How much does flood insurance cost? Regardless of your policy, its cost will probably be lower than repairing any damages on your own. Ideally, shop for your flood insurance quote well before any weather sets in. Preparing your property early on allows you to ask for multiple quotes. The right policy will be a mixture of quality coverage and reasonable costs.
