What is a Flood Insurance Deductible and How Does it Affect Cost yesensure

What is a Flood Insurance Deductible and How Does it Affect Cost?

Flood insurance is a type of insurance that covers damages to structures, contents, and other property in the event of flooding. Choosing what flood deductible you want can be tricky. Private flood deductibles are different from NFIP flood deductibles which result in higher premiums for homeowners. Read on to learn more about how your choice will affect the cost.

Flood insurance deductibles are the cost of flood damage you’ll cover after making a claim with your insurer. The higher deductible will lower the price, but in case there is any damage to your home that needs repairing, it may not be fully covered.

What is a flood insurance deductible?

Flood cover sounds like a scare word that you wouldn’t want to associate with. But, flood insurance, or if it’s through your homeowners policy, home insurance can get approved for a small price and be really important in case of flooding. In this case, the deductible is set out as part of your statement. This means every month that goes by before something happens doesn’t just help keep our premiums low and competitive but also keeps you covered too!

Don’t let a flood devastate your home!

The damage of flooding can be so much worse than the average homeowner could imagine – and that’s without considering how hard it is on you when all your personal belongings become ruined. If this sounds like something you want to avoid, then make sure you have an insurance plan in place with a great deductible for water-related disasters. The right balance between premium price points and deductibles will allow for protection from potential floods while also remaining affordable enough to not break your bank account every month!

Flood insurance is one of the most important types of insurance a homeowner can have. The building deductible applies to flood damage to your home, such as foundation or flooring and the contents deductible relates to personal belongings like furniture and clothing within that same structure.

Having a flood insurance policy with a building deductible of $2,000 and contents deductible of $1,500 seemed like the right decision until I woke up in the middle of the night to hear water rushing through my front door. The torrential downpour outside had led to high floodwaters and extreme flooding in my home. Upon inspecting it, I found that damage to my foundation was valued at $5,000 and damage to some personal items — my television, computer and furniture — was valued at 3 thousand dollars. Putting it all together, this meant that I could only collect an amount totaling 8 thousand dollars from my insurance company.

Flood insurance deductible payments can be considered as one of the many expenses that come with owning a home.

DeductibleTotal cost of damagePayment by your insurer
Damage to your building$2,000$5,000$3,000
Damage to your personal property$1,500$3,000$1,500

You may be responsible for $3,500 of the damage if you file a claim in this case — your building deductible plus $1,500 to cover your contents. Your insurer will pay up to the difference between what it estimates is lost and what you are willing/able to absorb yourself; subtracting out that amount from its total payout means more money would go toward repairs or replacements than waiting until something has been paid back by way of insurance premiums. However, as mentioned before with higher deductibles comes an increase in cost per year so make sure you’re being economical when determining how much risk (damage) coverage suits both needs and budgets!

When you’re comparing the cost of flood insurance, it’s important to consider how much your deductible is.

It can help determine what percentage of damage will be covered by a claim if flooding occurs in your home or business during this year.

Flood insurance should be a priority for those living in flood-prone regions. If you’re not already enrolled, make sure to check out the discounts that are available and determine which deductible is right for your budget.

To avoid getting flooded with water, it’s important to have a good combination of flood insurance and your deductible. When you get private or NFIP-backed flood insurance be sure to ask questions about how the premiums work so that you don’t end up paying too much money in order for protection when something does happen.

NFIP flood insurance deductibles

NFIP flood insurance is designed to provide a more affordable alternative for those with less property coverage. The premium and deductible will depend on the type of building you own, which should be taken into consideration when making your selection.

For example, if you live in a single-family home that is located within the high risk flood zone which most homes with NFIP policies fall under then your basic deductibles are between $1,000 and $10,000. Discount rates vary depending on what deductible amount you have chosen to purchase for these types of buildings ranging from 0% up to 40%.

Building DeductibleContents DeductibleInitial Discount
$1,000$1,0000%
$1,500$1,0001%
$2,000$2,0007.50%
$3,000$2,00010%
$5,000$3,00020%
$10,000$10,00040%

The deductible is one of many factors that affect the price and there are other discounts you should be taking advantage of like increasing your premium payment period for a discount, as well.

If you’re shopping for a flood insurance policy backed by the NFIP, then it’s important to get an estimate on different deductibles and talk to your agent about options before deciding.

Private flood insurance deductibles

For those of you who decide to go with private flood insurance, one thing that is important for you to know is how your deductible will affect the premium. You can typically find out this information by going online and calculating an instant quote which has a number of adjustable deductibles from major national insurers such as The Flood Insurance Agency or regional ones like TypTap, etcetera.

Scroll to Top