Cost of Flood Insurance in Florida and How Coverage Works – ValuePenguin
If you own a home in Florida, your mortgage lender may require you to purchase flood insurance if your home is located in a moderate or high risk flood zone. Flood insurance is still a good consideration even if it’s not required, due to Florida’s low elevation and high exposure to storms.
Homeowners and renters insurance policies do not cover flooding or storm surge, but you can purchase a flood policy through the National Flood Insurance Program (NFIP) or a private insurer. The average cost of a flood insurance policy through the NFIP is $562 per year, but you may be able to find lower rates and greater coverage flexibility by using a private flood insurance company. flooding.
cost of flood insurance in florida
Flood insurance rates are calculated based on a number of factors specific to your home, such as the elevation of your property, building materials, and distance from the shoreline. Depending on the features of your home, flood insurance rates can range from $190 to more than $2,000.
You may also receive a higher flood insurance quote if your home is used as a rental property or if you occupy it for less than half the year, both of which are common scenarios for Florida homeowners. you will also pay more in fees. The NFIP adds a $25 annual surcharge to each flood insurance policy, but that fee increases to $250 per year if the house is not your primary residence.
As you can see below, the average cost of flood insurance in Florida’s largest cities ranges from $389 to $950 per year.
To find the best flood insurance rates, we suggest comparing NFIP quotes with those of companies that offer private flood insurance. private flood insurance is generally offered at rates similar to or lower than nfip.
Also, a private flood insurance policy can extend higher coverage limits, meaning you could buy more comprehensive coverage if your home costs more than $250,000 to replace. however, private flood insurers may cancel your policy if they deem your home too high a risk to insure.
do you need flood insurance in florida?
Although flood insurance is not required by the state of Florida, it is a common requirement of mortgage lenders, especially if you are in a high-risk flood area. If government floodplain maps indicate that your home is located in a floodplain that begins with a or v, you may need to purchase a flood insurance policy. if you are located in flood zone x, c, or b, your home is considered to be at lower risk of flooding, but nearly a quarter of all flooding still occurs in these areas.
Many Florida homeowners are near a shoreline, such as a beach, river, or lake, which means they are at increased risk of flooding. Homeowners and renters insurance policies do not cover flooding, even in the event of storm surge or wind-driven water inundating properties, a common effect of hurricanes.
if you don’t have coverage and a storm hits, you may not get federal assistance through fema unless the event is declared a federal emergency. even then, post-disaster grants average less than $10,000. a flood can easily cause much more damage, as you may need to replace your home’s flooring, parts of the walls, and your personal property and appliances.
flood insurance companies in florida
You can purchase NFIP flood insurance from most Florida insurers and agents, so you can ask your current homeowners or renters insurance company for coverage if you want an NFIP policy. Alternatively, in recent years, Florida has made it easier for companies to offer private flood insurance as an alternative to NFIP.
We recommend comparing quotes from private flood insurance companies, as you can get a lower premium and access higher levels of coverage. Private flood insurance companies can also offer coverage more quickly, with policies starting in as little as three days after coverage. An NFIP policy, on the other hand, typically has a 30-day waiting period before the coverage kicks in.
The following insurance companies are the major issuers of flood insurance in Florida: