Everyone Lives in a Flood Zone

Hurricane season is halfway over, and while you may not have to worry about hurricanes where you live, you still have to worry about flooding. Many homeowners believe that flood insurance is not needed if they do not live in a “flood zone”. However, any home can be damaged by flooding, even if it is not in a flood zone.

According to Property & Casualty 360, 2015, every state in the country has experienced some sort of flooding over the last 50 years.  Flooding can be caused by heavy rains and rising water, along with storm surge. In northern states, flooding can be caused by melting snow and heavy spring rains.

Flood insurance can be very inexpensive in certain areas. Premiums for a Preferred Risk Policy, or PRP, can range from $146 to $474 annually. This type of policy is available to homeowners in an X or B flood zone. A Standard Policy is used in H, AH or V zones and has a much broader range of premiums.  A Standard Policy may be more expensive depending on the elevation of your home. An Elevation Certificate is required in order to rate policies in A, AH, or V zones.

A homeowner can purchase a flood insurance policy for dwelling coverage up to a maximum limit of $250,000 and contents limits of $100,000. Deductibles are also available on the dwelling policy form.

Property & Casualty 360 states, “In 2012, the average flood insurance policy coast $650 per year. In 2014, average claims paid ranged from a low of $10,476 to a high of $42,275” (2015).

Flood insurance rates are set by the National Flood Insurance Program and are the same for every independent agent. The information contained on the Elevation Certificate is entered in the rating system which produces the annual premium.

Contact RMC today for a quote and any other insurance questions you may have. Let RMC worry about the risk so you don’t have to...