2023 – How Much is Flood Insurance in CT?
Learn everything you need to know about saving money on Flood Insurance from the folks who know flood insurance best – the Flood Nerds
Hi! I’m Robert Murphy, the Top Flood Nerd at Better Flood. Flood Nerds love to shop for flood insurance and we find historic savings on Connecticut flood insurance. If you’re tired of increasing premiums or just need to get cheap flood insurance quickly, let the Flood Nerds find you the best coverage and price.
Connecticut Homeowner’s Insurance Excludes Flooding
A typical Connecticut homeowner’s policy is written through Traveler’s, Nationwide, Allstate, or State Farm. These policies protect your home from things like fires, storms, and theft. But they don’t cover the damage from flooding.
Call your homeowner’s agent and ask them to add a flood endorsement to your policy. They will just laugh. But it’s not funny. Flooding is a serious risk in Connecticut.
To be protected against flood damage, you must purchase a separate flood insurance policy. And unfortunately, those Nationwide, Allstate, and other insurance agents will just stick you in the National Flood Insurance Program (NFIP). It’s easy for them but very expensive for you. Of the approximately 34,000 flood policies recently in effect in Connecticut, 32,000 of those were these Write Your Own policies that are just NFIP under a private logo. That’s not how to save money on Connecticut flood insurance.
The Flood Nerds are Connecticut Flood Insurance Experts. We know the Connecticut private flood insurance market like the back of our hand and we will always find you the best coverage and rate.
GETTING A QUOTE FOR CONNECTICUT FLOOD INSURANCE IS FREE
Is CT Flood Insurance Really Necessary?
If flood insurance is so necessary for Connecticut property owners shouldn’t homeowner’s policies provide it?
The National Flood Insurance Program (NFIP) had a stranglehold on the flood insurance market for years. Too many people think if they aren’t in a high-risk flood zone they don’t need coverage. And they find out they’re wrong the hard way.
“Kylie is calling from Connecticut. It’s probably nothing, yeah, nothing at all”
Ben Folds 2008
Nothing at all, yeah. That’s unless there’s been a coastal storm or rain. Then Kylie is calling from Connecticut for help. She’s washed out. In 1955 back-to-back hurricanes inundated most of the state with rain. The rivers and creeks rose. Farmington, Putnam, Naugatuck, Waterbury, and Winsted were washed out. 87 people died.
And when it rains in Connecticut, it pours.
Even areas of Connecticut considered to be low-risk areas are still at risk. That’s because 20% of all flooding events in the US every year happen in those “low risk” areas.
Did you think about buying flood insurance when you bought your house but said “If the lender doesn’t require it I must not need it”? Maybe the real estate agent told you it wasn’t necessary.
Ever see a big storm coming and think about flooding? When the storm’s on the way, it’s too late to buy insurance. Maybe the flood of 2018 when 8 inches fell over the tri-state area didn’t affect you. But what about the next flood or the one after that?
In Connecticut, a “low-risk” area isn’t a “no-risk” area.
The government has been collecting flood data for the last 50 years. This data shows that recent major storms cause flooding in low-risk areas. And 90% of people who had floodwater in their homes after these flooding events didn’t have flood insurance.
Don’t buy the lie that low-risk equals no-risk. Buy flood insurance!
What Happens When You Flood Without CT Flood Insurance?
When your home is damaged by floodwaters and you don’t have a Connecticut flood insurance policy you must pay to repair the damage.
Flooding is one of the most expensive causes of damage to repair. It can cost $40,000 to $90,000 and that’s not even considering the damage to the contents of your home.
Right now you are saying “Yeah, but if you are such a Flood Nerd you know the government will step in and help”.
Government assistance after a flood is another lie. It’s a whopper too.
“The nine most terrifying words in the English language are:
I’m from the Government, and I’m here to help.”
Ronald Regan, 40th President of the US
In order for you to get that government “assistance” all these pieces must fall into place:
√ The Connecticut Governor must request a federal declaration of disaster.
√ The President must declare the area a disaster area to make federal assistance available.
√ You must apply for that assistance.
√ If you get it, the assistance will be in the form of a loan you MUST pay back.
√ That glorious assistance will be about $5,000.
You get a loan of about $5,000 to cover an average of $40,000 to $90,000 in damage.
Now you know why so many properties are abandoned or foreclosed after flood damage. In Houston, foreclosure starts after the floods from Hurricane Harvey spiked 76%. People lost everything and just walked away. Sad.
Flooding is the number one natural disaster in the US ~ If you don’t have flood insurance you face financial ruin.
Since 1980, 80% of federal disaster declarations have been for floods.
When that happened, federal assistance helped a little, but too many people discovered that is far better to have flood insurance rather than to rely on the government.
Flood Maps in Connecticut
Many of the flood maps for Connecticut date back to colonial times. Well, not really but they are more than 40 years old. If your property is in an area that has been developed after the flood map was created, the map isn’t accurate anymore. That’s because development literally changes the landscape. Buildings, parking lots, and driveways cover the soil with concrete. Now the land doesn’t absorb water the way it did before. It runs off. So when it rains that water must flow somewhere and that may not be where it flowed before development. Bad maps don’t reflect the actual risk of flooding.
This leaves Connecticut property owners under or uninsured.
And Connecticut has many bad maps. The First Street Foundation (a non-profit think tank that studies this flood stuff) estimates that more than 46,000 Connecticut homes are at a greater risk of flooding than the maps indicate.
After Tropical Storm Irene, only about 30% of losses in Connecticut were covered by insurance.
And Connecticut isn’t alone. In one county in Texas, 134,000 homes flooded during Harvey. Three-quarters of those homes were in low to moderate risk zones. 80% of the people in the low-risk zones didn’t have flood insurance.
Connecticut isn’t just at risk from coastal storms. It seems each Spring, floods from ice dams cause flooding in some parts of the state.
It can flood anywhere in Connecticut.
No matter what the map says, it’s better to have coverage and not need it than to not have coverage and wish you did.
Connecticut Flood Insurance Options
Most homeowners, real estate agents, and lenders don’t realize you have many options when it comes to buying Connecticut flood insurance. But the Flood Nerds know all about getting cheap flood insurance in Connecticut. We know more than 5 Ways to Save on Flood Insurance. In Connecticut, you have basically two markets for flood insurance.
The National Flood Insurance Program is run by the Federal Emergency Management Administration. This is the government option for flood insurance. They’ve basically had a 50-year monopoly on the market and the premiums reflect their dominance.
The NFIP mainly uses resellers. These companies like Traveller’s, Nationwide, and Progressive (just a few examples) sell you a policy under their company name, but really it’s an NFIP policy with their insurance company’s logo on it.
If you see one of these logos on your flood policy, you have an NFIP policy written through one of these big insurance companies.
This is a government policy in disguise. That’s NOT the way to save money on flood insurance in Connecticut. Wonder if your flood insurance is through a reseller? Check out this list of companies that resell the NFIP policy.
Connecticut Private flood insurance market
Connecticut may be small in square miles, but it is large enough to handle a robust private flood insurance market. You can even tap into the Lloyds of London flood insurance syndicate for Connecticut flood insurance. Often you can get great rates with Lloyds because they spread the risk all over the world. The risk of the entire planet flooding at once is very small. We Flood Nerds joke “God said he wouldn’t flood the world again and Lloyds of London takes him at his word”. Now you know what makes a Flood Nerd laugh.
But getting the right Connecticut flood insurance is no laughing matter. There are so many real private options that it is easy to confuse the private flood insurance market with those NFIP re-sellers. That’s why you need to let a Flood Nerd shop for your cheapest flood insurance in Connecticut.
We shop all the flood insurance options for your property in Connecticut and ensure you get the best premium. We’ll even check out the NFIP to make sure that all the bases are covered.
The Cost of Flood Insurance in Connecticut
Connecticut has everything from coastal cities to rural towns. And it’s blessed with many rivers, streams, and creeks.
One major factor in the cost of flood insurance for Connecticut is the property location and the company you choose to write the coverage. Premiums for homes in low-to-moderate risk are lower and premiums in high-risk areas are higher.
Flood Zone X – Connecticut Low to Moderate Risk Zone
Lenders don’t require flood insurance in this zone. But remember, floods like those from ice dams and storms can happen in low-risk zones, and the map may be old.
For properties in the X Flood Zone, we usually suggest the government Preferred Risk Policy (PRP). The government subsidizes a portion of the premium and limits the coverage, so this keeps the rates low.
The average cost for PRP flood insurance in Connecticut with the maximum coverage limits in low-risk flood zone areas is $699 per year.
Flood Zone AE in Connecticut
A higher risk flood zone is Flood Zone AE. If your property is in Zone AE, your lender will require you to have flood insurance.
The cost of flood insurance in Connecticut in flood zone AE really depends on factors that are unique to the structure.
As an example, let’s look at a house built on a subgrade basement in Bridgeport. The Base Flood Elevation (BFE) is 135.2 and the home was built before 1920. The sample policy is for flood coverage at the NFIP maximum of $250,000 for the building only. It doesn’t include contents and the deductible is our recommended amount of $5,000.
While the example house is in Bridgeport, the premiums will be the same as in Fairfield, Greenwich, Norwalk, Stamford, Stratford, Banford, Milford, and most other Connecticut cities and counties in AE flood zones.
The NFIP option in Connecticut Flood Zone AE is $3,363.00
This would be the price if the property had a previous flood loss and either doesn’t have an Elevation Certificate or the Elevation Certificate shows the lowest floor is 4 feet under the BFE. This policy lets you use 10% of your coverage to cover other structures on your property
Now, let’s look at the real Connecticut private flood insurance market and compare the options. The coverage and deductible are exactly the same.
The Connecticut Lloyds of London policy would be $864.40
This option is great but they won’t cover a property with a prior flood loss. But they will cover more than the NFIP and about $2,000 for loss of use. $2,000 for other structures doesn’t increase this coverage. They don’t require an elevation certificate.
Connecticut private flood insurance (Not Lloyds) is $2676.00
This option will take properties with one prior flood loss if it was more than 5 years ago and the claim was under $100,000. They will write practically all risks, and you don’t need an elevation certificate.
Replacement Cost Value Coverage
Standard flood insurance provides coverage for a set amount. But with flood insurance from the private marketplace, you can insure for the actual cost to replace the home. These policies must be written for the actual replacement cost. The $250,000 example we are using is probably a little low for replacement cost, but to keep the comparison the same we’ll stick with that amount.
So for $250,000 replacement cost value building coverage, 20% contents coverage, 10% other structures, and 10% loss of use with a $5,000 deductible the annual premium for RCV coverage is $4,064. That’s way more insurance and better coverage for only a slightly higher price than the NFIP!
Flood Zone V and VE in Connecticut
NFIP insurance for homes in the V and VE flood zones of Connecticut is crazy-expensive. Once I saw a premium of $30,000 a year for a single home family. This is ridiculous!!
To save you money, the Flood Nerds shop flood insurance for your V or VE flood zone properties on the private flood market underwritten by Lloyds of London.
We see savings in the thousands with this approach AND we have been able to double and triple coverage for properties on the Connecticut Atlantic coast.
The problem with the NFIP approach is they take a one-size-fits-all approach to coverage. The results are premiums far too high for waterfront houses.
Many coastal Connecticut homes are custom built. The NFIP doesn’t take this into consideration but Lloyds of London other private flood insurers do. They offer variable coverage options as well as significant savings.
For example, a Fairfield home on the Connecticut coast, in a VE flood zone map needs $250,000 of coverage, with no contents coverage and a $5,000 deductible.
The NFIP annual cost for flood insurance in a Connecticut VE flood zone is $12,278.00
The same coverage for the same property on the private market is under $2,500.00
Average Flood Insurance Costs in Connecticut by Area
How much does flood insurance cost in Connecticut? If you look at the number of NFIP policies and the combined premium you can see people pay way too much in Connecticut for flood insurance.
Connecticut has 37,322 NFIP policies in force at a total cost of $52,057,947. That makes the average flood policy in Connecticut $1,394.00 for NFIP. Most of these people would save money if they had private flood insurance! Let’s STOP THE MADNESS!
Old Saybrook, CT
East Haven, CT
New Haven, CT
West Haven, CT
East Lyme, CT
Norwich & Old Lyme CT
Groton Long Point
New London, CT