3 obstacles that divert your ability to save money on flood insurance.
First is working with an agent that doesn’t understand flood insurance, has less than 700 flood insurance policies, and only shops for the NFIP option. For this reason, we do not think your auto or homeowners insurance agent will be a good option for you or be able to do right by you with your flood coverage. And this could end up costing you much over the years.
Second, if the property has had a prior flood and the payout was more than $50,000, then the private markets won’t offer coverage for your property. If you have had more than one flood, that would be a definite no.
Lastly is not having the flood nerds shop your flood insurance to get options and the better price for your budget.
Striking a balance between how much flood insurance and how to avoid paying for flood insurance.
You might be tempted to think that your property will never flood, you don’t want the policy in the first place, and you are only getting coverage to satisfy your lender. Instead, I would like you to consider the cost of having flood water in your home if you do not have flood coverage.
The NFIP has a study they completed from 1996 – 2019.
They discovered that the average payout of claims is about $52,000.
If you got caught without flood insurance and had that much damage, you would need to get a loan to make repairs, and the loan has an interest.
The interest on $52,000 could be around $6,878; if you paid this loan off in 10 years, your loan payment would be about $621 a month.
Compared to the average cost of flood insurance at a $909 annual premium, the monthly cost would be $75 compared with the loan payment.
To me, flood insurance makes financial sense.
2022 forward offers an abundance of storms and flooding events.
Twenty-one percent of homes in the US are at risk of flooding and do not have coverage.
If you ask how much is flood insurance in zone AE in Illinois, this should help you find that answer. Illinois has 118,485 at risk of flooding, and only 13,325 have made the smartest choice to protect their financial future.
If you are wondering how to find how much is flood insurance in zone ae Louisiana, this link will help. Louisiana, with 247,341 and which has seen more than its fair share of flooding, is doing much better than most states with only 35,7% of properties that are at risk not having coverage.