How Much Does Flood Insurance Cost?
Flooding is expensive; there's no two ways about it. It's a force of nature to be reckoned with, and recovery can only begin once waters recede. Without a flood insurance policy, your clients may be in for an unpleasant surprise when they learn their homeowners or renters insurance doesn't cover the damage caused by flooding. When your clients hear they need a separate dedicated policy, there are two questions often asked:
How Much Does Flood Insurance Cost?
- To understand the cost of flood insurance, your clients will need to understand key factors:
- Their flood risk;
- The type of coverage they're looking to purchase;
- The location of their home or business;
- The design and age of their building; and
- The location and positioning of building contents, such as utilities.
- It's important to remind your clients that flood insurance is an investment in their home.
- While the national average of flood insurance cost varies, you can share with your clients the cost of recovering without a policy. Even just a few inches of floodwater can cause thousands of dollars of damage to your client's home, and having peace of mind gained by protecting one's home against flooding is worth the investment.
Is Flood Insurance Expensive?
- If you've been selling insurance for a while, you'll be familiar with your clients asking how expensive their policies are. The best way to determine their specific premium is to get your client a quote.
- There are many situations in which your clients may struggle to make the investment in flood insurance. The NFIP has detailed resources can use to help guide your clients through conversations about mitigating their risk to help them pay less. This can include:
- Lowering their risk, through mitigation actions like elevating the utilities in their home;
- Choosing a higher deductible; or
- Providing an elevation certificate (EC)
Flooding is expensive, but with a flood insurance policy recovery is possible. Talk to your clients about how flood insurance is an investment and not just another bill. With it your clients will be prepared for anything and everything nature throws at them.
