Don't Buy Flood Insurance Without This Why Coverage Works yesensure

Don’t Buy Flood Insurance Without This! : Why Coverage Works

There’s a lot of talk about flood insurance in Florida lately. With Hurricane Matthew on the way, many people are wondering if they should buy it and what coverage is best for them. I’ve got some great information to help you decide if flood insurance is right for you!

In this blog post, I will discuss why coverage works as well as the factors that affect your rates so that you can make an informed decision about whether or not to purchase it.

If you live in Florida and have a mortgage, your lender may require you to purchase flood insurance. If the area where your house is located has moderate or high risk for flooding then it’s required by law that residents buy this type of insurance as well. Floods are very common around here so even if they don’t legally need them, I highly recommend buying some just on principle!

You may not know that your homeowners or renters insurance doesn’t cover floods. The National Flood Insurance Program (NFIP) has a policy for flood losses, but it’s expensive at $562 per year. You can find more affordable rates and coverage flexibility by going through a private company instead of the NFIP-and there are plenty to choose from!

Cost of flood insurance in Florida

Just in case you’re not aware of the risks that come with living by water, did you know flood insurance is mandatory for all homeowners? The average cost of a policy bought through the NFIP comes out to $562. Floods rates can vary depending on whether or not your property falls into one of Florida’s high-risk zones and what type it structure your house has.

If you live near the coast, then flood insurance is an absolute necessity. Let’s say that your house in on Zone A and has a $190 annual premium; well now imagine what it would cost if you moved to Zone D with a $2,000 yearly price tag?

Summarize: If flooding or storm damage are ever problems for your home- as many people living by coasts can attest to – then there’s no better time than right now to looking into government subsidized rates of federally backed mortgage loans through FEMA so long as they’re within one of these 14 zones.

It’s not always easy for Floridians to find affordable flood insurance. Additionally, the NFIP adds an annual $25 surcharge and that fee jumps to a whopping $250 per year if you’re renting out your house or only occupying it half of the time (common scenarios in Florida).

If you live in Florida, then the cost of flood insurance will depend on where you call home. For example, a Floridian living near Tampa Bay might pay $859 per year while someone residing by Miami Beach may only need to shell out $390 for coverage.

CityPolicies in forceTotal CoverageTotal PremiumsAverage cost per policy
Jacksonville25,121$7,459,799,100$11,477,567$457
Miami51,595$11,217,918,300$20,121,760$390
Tampa27,257$7,512,210,100$23,414,175$859
Orlando2,792$770,482,900$1,464,701$525
St. Petersburg34,953$7,914,322,200$33,219,095$950
Hialeah13,270$3,016,487,300$5,198,698$392
Port St. Lucie6,140$1,790,964,500$2,385,524$389
Tallahassee1,849$486,317,600$1,239,534$670
Cape Coral33,256$8,911,569,500$24,297,524$731
Fort Lauderdale38,806$9,681,889,700$15,722,665$405

If you’re looking for the cheapest flood insurance rates, we suggest comparing quotes from NFIP to those of private companies. The problem is that not all mortgage lenders will accept a non-NFIP policy as meeting your loan requirements, but if they do and offer cheaper or similar priced coverage than what’s offered by NFIP then it might be worth considering going with them instead.

With the new changes in private flood insurance, you could get more coverage for your home if it costs over $250K to replace.

So, are you thinking about moving to Florida? You’ll need flood insurance if so.

Have you considered what would happen if your home flooded?

Floods can do a lot of damage. For financial protection, make sure to get flood insurance so that even in the worst-case scenario like floods and hurricanes, you’ll have help with clean up costs.

When you’re looking to buy a house, one of the first things that may come up is your potential flood risk. Flood insurance isn’t required by Florida law but it’s often mandated for lenders since many high-risk areas are in these zones and this type of coverage can be expensive if not purchased before hand. If you have an A or V zone designator on the FEMA map where flooding happens more frequently than average (not all homes with X designation will be protected from water damage), make sure to note whether or not flood insurance terms were included when signing papers at closing so there won’t any surprises later down the line!

If you don’t have a flood policy, it might be time to invest in one. Flooding can happen no matter what season or area of the country that is experienced and homes across Florida are at risk for flooding because they’re close to waterfronts like beaches, rivers, lakes etc. Insurance doesn’t cover floods even if surges which cause wind-driven water from hurricanes enter into your home but having an additional coverage plan could help keep you safe!

You don’t want to be caught in a storm without coverage. If you’re hit by an emergency and FEMA doesn’t provide assistance, it could cost $10,000 or more just to replace your personal property. Floods can cause tons of damage too; for example if the floor needs replacing then that’s another $5k on top of what you may have lost from flood water ruining everything else as well!

Flood insurance companies in Florida

Did you know that most Florida insurers and agents sell NFIP flood insurance? Ask your current homeowners or renters insurer for coverage if you want an NFIP policy. Alternatively, in the last few years, Florida has made it simpler to get private flood insurance as a replacement for the National Flood Insurance Program.

Private flood insurance companies are great when you need quick coverage. I found that after the hurricane, it took a while for my NFIP policy to kick in (30 days!). Private insurers offer policies starting as soon as three days after they receive your application!

This list is sure to come in handy for anyone living near Florida’s many ocean and bayfronts.

The following insurance companies are primary writers of flood insurance in Florida, according to the Insurance Information Institute:

AIGLloyd’s Underwriters (The Flood Insurance Agency)American Integrity Insurance Company of FloridaProgressive Property Insurance CompanyAmerican Strategic Insurance CorporationSafe Harbor Insurance CompanyCentauri Specialty Insurance CompanySouthern Oak Insurance CompanyEdison Insurance CompanyTower Hill Insurance CompanyFederal Insurance Company (Chubb)Typ Tap InsuranceFlorida Peninsula Insurance CompanyUniversal Insurance Company of North AmericaHomeowners Choice Property & CasualtyUS Coastal Property & Insurance Company Voyager Indemnity Insurance Company (Assurant)
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