There is a belief that flood insurance is expensive, and the news loves to report that flood insurance rates are going through the roof. As a Flood Nerd who only works in flood insurance nationwide, I see, quote, and shop many options for flood insurance the belief that flood insurance is expensive is true for some however for most properties it is possible to find affordable flood insurance. You just have to know where to look or get a Flood nerd looking for you.
We shop for many options to find a great price for you. We can back this up because we have shopped over 7,000 + properties from residential, commercial, and condo units, including master flood policies and RCBAP. And have all this data from more than 40+ companies all to say that the vast majority of residential flood insurance premiums are between $450 – $1,500 depending on location and foundation. And having specialized only in flood insurance for over 10 years, we come to believe that flood insurance can be affordable for many. You need an expert shopper on your side.
What is not affordable is flood damage.
Let me break this down for you.
If you were to have a flood loss and didn’t have flood insurance, your financial security in your later years could be lost or at least set back 10 to 15 years. Sadly this is the reality that many uninsured Floridians and Texans are facing from our last two major storms. Hurricane Ian and Hurricane Harvey.
The average claim can range from $37,000 to $123,000 depending on damage and water depth.
For our example let’s say that the damage amount of this uninsured property was $52,000. In order to begin repairs this homeowner would have to get a loan and the interest on that loan would be about $6,878 over ten years.
Making the monthly payment for this loan $671 every month for 10 years.
Compare that to the average cost of flood insurance at $909 had this owner bought coverage prior to his loss.
The monthly breakdown of $909 is about $75 a month.
Compare that to $620 to pay back a loan you didn’t want and or need at this juncture in your life. Flood insurance is much more affordable in my mind.
Homeowners flood insurance
A standard homeowners policies don’t cover flooding as a loss that you can file a claim on and the only way to ensure that you have the coverage you need is to buy a stand alone flood insurance policy and the flood nerds can guarantee that we can find you at a great price.
Most people are still getting their flood insurance from FEMA’s National Flood Insurance Program (NFIP). And this is because up until 2015 the NFIP was your only option. However more confusing is you can get a flood policy with the company logo on it that you get your auto and homeowners with
This is just a disguise.
Companies like State farm flood insurance, Allstate flood insurance, Geico Flood insurance, Progressive flood insurance, even USAA flood insurance and many more or any number of these big box companies like them are not actually covering you with a flood insurance policy, they just are putting their logo in the NFIP policy. Kinda deceptive.
How to get affordable flood insurance.
There are a few reasons why flood insurance historically hasn’t been affordable for many. One main one is that these large box insurance companies (many of the logos on the image below) are not experts in flood insurance and most of their captive agents don’t know the all the tricks on rating to ensure their clients are getting the best rate with the NFIP policy so most people that have the NFIP policy are over paying and have been for years. In addition FEMA forced most of these companies into a non compete clause so they can’t even offer any other option but the NFIP again you lose out in this situation
We Flood Nerds take a different approach we shop around for our clients. Our shopping includes the NFIP of course because if rated accurately this could be the most affordable option. We also have about 40+ private flood insurance markets that we can tap into to find the most affordable flood insurance out there and unless you already have that cheap flood insurance option we will get it for you.
Now that times are difficult with rising inflation, gas prices and basically the cost of everything going up looking at getting affordable flood insurance and actually all insurance coverage is top of mind for many property owners.
Some of the reasons that NFIP premiums tend to be higher than the private flood insurance markets are that the NFIP adds massive surcharges for their flood insurance on a second home. Or any structure that is not your primary residence. In addition to this insult of higher premium surcharges they also only pay out claims on an ACV valuation.