Are you thinking about investing in flood insurance, but aren’t sure if it’s worth the money?
Floods cause millions and millions of damage each year, and without insurance, you could be left fully responsible for covering damage-related costs to your home. But, how much does flood insurance cost? Is it worth the investment?
Check out this guide to learn about the average cost of flood insurance.
The Average Cost of Flood Insurance
The average cost of flood insurance is between $563 and $1447 per year. How much you pay largely depends on where you live. For example, in Vermont, you can expect to pay $1447 per year for flood insurance.
In Florida, you only have to pay about $563 per year for flood insurance. If you’re living in Oregon, you can expect to pay about $895 per year. If you live in Colorado, you can click here to learn how much you can expect to pay in this state.
The variation of cost has to do with the average cost of living in your state as well as the likelihood of floods occurring there.
Factors That Influence Flood Insurance Premiums
Of course, the above numbers are only estimates, and it’s important to understand that you could end up paying way more or way less than your state’s average based on a number of different factors. Here are some factors that affect flood insurance premiums:
Year of Construction
Finding out the year your home/building was constructed can help you figure out flood insurance prices. If your home has already been through a flood or two in its lifetime, then you can expect to pay higher premiums.
Your Flood Zone
Your flood zone explains how likely you are to experience a flood based on where you live. If you live in a higher risk area, you can expect to pay higher insurance premiums.
You can enter your address on FEMA’s website to find out what type of flood zone you’re in.
Number of Floors and Building Occupancy
If your home has a basement, then you can expect to pay higher insurance premiums. You can also expect your premium to change based on the number of people occupying the building. Typically, the higher the occupancy, the higher the premium.
If you do have a basement and you want to pay a lower premium, consider storing your valuables on the main floor or above. Storing valuable items in your basement can cause your insurance premiums to rise.
You’ll also want to consider the deductible when buying flood insurance. The higher your deductible is, the lower your premium will be. However, the opposite is true for building and contents coverage. The more coverage you get, the higher your premium will be.
Are You Ready to Buy Flood Insurance?
Now that you understand the average cost of flood insurance, it’s time for you to figure out which type of policy is right for you. Whether you live in a high-risk flood zone or not, flood insurance is always a good idea.
Be sure to check back in with our blog for more insurance-related tips and tricks.