![]() ![]() If these items are damaged on a primary residence, the policy pays out on a replacement cost basis - meaning what the item costs to replace as new in today’s market (not factoring in depreciation or condition of the item). Major appliances like refrigerators, stoves, and dishwashersīuilt-in/permanently installed cabinets, paneling, and shelvingįoundation walls, staircases, and anchorage systems Here’s a list of what the building portion of a flood insurance policy generally covers:įurnaces, water heaters, fuel tanks, well water tanks and pumps, and solar energy equipment Buildingīuilding coverage protects the structure of your building, permanently installed and built-in items, and major functional systems, like electrical and plumbing. These items fall under the two main umbrellas of flood insurance coverage: building and contents. This can include replacing appliances, carpeting, or blinds, repairing your foundation, or even covering clothing or furniture that’s been lost in a flood. įlood insurance covers the costs to repair or replace items that are damaged by flooding. Currently, the top flood insurance companies include Zurich Insurance Group, American International Group, Assurant, AXA, and Swiss RE. ![]() This is due to the unique overhead costs, staffing, and appetite for risk that each insurer has.Īlways make sure to compare a few different insurance companies to be sure you’re getting the best deal. Premiums on flood insurance policies - and any type of insurance, for that matter - vary by insurance company. Policies with low deductibles are riskier for insurers and come with higher premiums. High deductibles mean the insurer has fewer potential losses and can offer a lower premium. The deductible is the portion of costs you’re responsible for before your insurance company will cover any damages. Helpful Read: How to File a Flood Insurance Claim Deductible amount With NFIP plans, the most coverage you can get is $250,000 in building coverage and $100,000 in contents coverage. Policies with higher coverage amounts, for which insurers are on the hook for larger payouts in a flood, will come with a higher premium. The amount of coverage your policy has - meaning how much it will pay out in the event of a flood - is another big factor in setting your flood insurance premium. It’s always important to compare both options when getting flood insurance, especially if you’re on a tight budget. Private policies may be more customizable and can often be bundled with other insurance plans, which could mean lower-cost coverage. You can get a flood insurance policy through the National Flood Insurance Program or through a private insurer. Learn More: Flood Insurance: The Ultimate Guide for Homeowners Policy type These factors “provide a deeper understanding of the building’s individual flood risk” and allow insurers to set more accurate premiums based on it, according to FEMA. Number of floors and height of the first floor Here are just a few of the building characteristics FEMA says will come into play:įoundation type and location (underground, at ground, above ground) How your home was built is a factor, too, as this can influence how likely it is to be damaged in a flood. Generally speaking, the higher the risk of flooding, the higher the premium will be. Insurers consider a home’s distance to potential flooding sources (oceans, lakes, rivers, etc.), the elevation of its lot, and other community characteristics when evaluating its flood risk. Flood riskĪ home’s location - and specifically how at risk it is for flooding - plays a huge role in the cost of flood insurance. Many factors can influence the cost of a flood insurance policy, including things like the home’s location (and the risk of flood it carries), the type and amount of coverage you’re purchasing, the age and structure of your home, the policy’s deductible, and more. Factors that determine the cost of flood insurance ![]()
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