How Costly is Flood Damage Insurance?

If you're currently in the market for flood damage insurance, you'll want to get the best value for the best price. This basic information will help you understand how flood damage insurance is priced.

Annual Premiums

If you live in a single-family, one-story house, you should be prepared to pay $400 to $450 in annual premiums if your home is located in an area that is considered a moderate flood risk. Conversely, if you live in an area that has been deemed low risk, your annual premium may be as little as $120. If you reside in an area that is particularly prone to flooding, however, you may be expected to pay in excess of $2,000 in annual premiums.

Coverage Limit

Most insurance companies will cover up to $250,000 in damage for customers with residential flood damage insurance. Unless your home has been completely demolished, this amount is generally enough to repair any damage and replace any possessions that were lost on account of flooding.

Additionally, certain insurance companies only offer flood damage policies that pertain to common forms of household flooding, as opposed to flood damage produced by natural disasters. So before committing to buy, make sure you're receiving the proper type of coverage, particularly if you live in a high risk area.