2023 – Quick Flood Insurance quote NJ
Flood Insurance NJ



Does my New Jersey homeowner insurance cover flooding?
A typical New Jersey homeowners’ policy is written through Farmers, State Farm, Allstate, and Progressive, for instance, excludes flooding as something that will be covered under their homeowner’s policy.
In most cases, the only way to get flood coverage is by purchasing a stand-alone flood insurance policy. However, you should ask your homeowners agent if you can add an endorsement to your homeowner’s policy to cover flooding. Yet, don’t be too surprised if the answer is NO.
Do I need flood insurance in New Jersey?
It is important to have flood insurance coverage in New Jersey because our beloved state has seen a fair share of flooding, and there is likely more coming.
We believe most homeowners think about Flood insurance in New Jersey at some point, maybe before buying a home or during the closing process. However, many of us only think about it when a big storm looms, or we have heard on the news that there is flooding forecasted or happening too close to our home.
If your home or business is in a flood zone, that is considered a flood-risk area. Sadly, many homeowners decide to forgo purchasing coverage because they believe they are safe from flooding. Some real estate and insurance agents may even say you don’t need it.
I ask you to consider the facts: 20 percent of all flooding events across our nation come in areas that are considered low risk. After our last few major storms (Hurricane Harvey), we saw flooding in these low-risk areas. Eighty percent of these individuals had water in their homes or building and didn’t have flood insurance coverage.
In Harris county, nearly 135,000 homes were damaged. Three-fourths of these properties were considered low to moderate risk.
We often hear that people believe the government will help, which is true. However, a few things must align for you to get government assistance.
NJ flooding
1 – The president of the United States must declare the flooding event a state of emergency. If this doesn’t happen, then there won’t be assistance.
2 – The average amount of assistance that homeowners get Homeowners’ average amount of assistance after a flood when they do not have flood coverage is $5,000. The average cost of damage to one’s property after a flood is $38,000+. That $5K you get from the government? It comes as a loan, and you will need to pay it back. Are you willing to gamble away your financial future by forgoing flood insurance coverage?
One more note on these low-risk flood zone maps. Many of these maps are over 40 years old. If the area has been developed, there is likely more concrete, creating a barrier for land that, previously, might have absorbed the massive downpour.
New flood insurance rates NJ
Because of all these factors, it is difficult for property owners to know their true risk of flooding. FEMA admits that their flood maps only give an idea of part of the risk. Our recent storms are facts that it can rain anywhere within New Jersey, and you should consider getting flood coverage so you are not uninsured when you need it most.
FEMA flood zone maps often take years to go into effect after the terrain was studied; this gives the impression that the area is “more up to date” than it is.
NJ flood zone map
The average cost for New Jersey flood insurance in these Low-risk areas is $595 per year.
FEMA’s National Flood Insurance Program (NFIP) and all federally backed lenders rely on these New Jersey flood insurance maps to assess risk, set premiums and determine who is required to purchase flood insurance. Bad information about an area’s flood risk can leave property owners under, or an area’s flood risk can leave property owners uninsured.
How much is flood insurance in New Jersey?
There are many options available in New Jersey regarding flood insurance, but they fall into two main categories. The Government policy also called the NFIP or FEMA, and the private flood insurance market.
New Jersey NFIP flood insurance.
The National Flood Insurance Program (NFIP), also known as FEMA, is the government option for flood insurance. The NFIP has enjoyed a 50-state monopoly on the flood insurance market.
Not “private flood insurance” but NFIP Resellers
Suppose you have Nationwide Flood Insurance, State Farm Flood Insurance, Progressive Flood Insurance, or any of the logos below. In that case, you are buying the NFIP flood policy that is just being resold through a government program. These companies are private companies, but their flood insurance is not. Here is a list of the 70 companies that resell the NFIP policy.
New Jersey private flood insurance market
There are alternatives to the NFIP or government insurance. It is called Private flood insurance, most notably Lloyd’s of London Flood insurance. However, there are other options available in New Jersey. We shop all the options for your property in your region to ensure you are getting the best premium. Please click here if you are ready to have us do the work for you.
Our shopping does include the NFIP because sometimes we find that with government subsidies, you can get a much better premium, including the NFIP. After all, sometimes, you can get a much better premium with government subsidies.
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Lloyd’s of London Flood Insurance New Jersey Market
New Jersey is fortunate to have many Lloyd’s of London flood insurance options. Although many Lloyd’s flood insurance companies will have you assume that there is only one option, nothing could be further from the truth.
Lloyds’ of London has a rich history attributed to having invented the first modern insurance model. Unlike most of its competition, Lloyd’s of London is not a company but a corporate body. This structure works well since it has been around for over 330 years. Lloyd’s operates under multiple financial backers pooling their capital to spread the risk.
I have two blog posts that deep dive into Lloyd’s of London and what they mean to New Jersey’s flood insurance market. If you are interested, the links are below.
Lloyd’s of London Flood Insurance
FEMA vs. Private Flood Insurance
Lloyd’s also ensures the world with flood insurance, which covers flooding events in India, Australia, and much of Europe. The “game” of insurance is to spread your risk since Lloyd’s is worldwide.
My joke here is that Lloyd’s is banking on GodsGod’s promise that he won’t flood the entire world again, …..so they won’t have to pay out the whole world’s flood claim.
How much does flood insurance cost in New Jersey?
Many factors go into getting the cost of flood insurance for New Jersey. If your home is considered a low-to-moderate risk, you can get a heavily subsidized policy through the government.
New Jersey flood insurance low-to Moderate Risk rate and cost.
This is Flood Zone X, which is not lender required flood zone.
This is usually identified as an X-flood zone. Then we would suggest the government Preferred Risk Policy (PRP) which is a subsidized policy and has set flood insurance coverage limits (see the grid below):

How much is flood insurance in NJ
The average cost for flood insurance in New Jersey with the maximum set limits in these Low-risk flood zone areas is $405 – $700 per year.
If your property is in a higher-risk flood zone, it is usually identified with a Flood Zone AE. Your lender will require you to have flood insurance. The cost of flood insurance in New Jersey depends on many factors that are unique to the structure. We will try to give you an idea of the most common homes we see in New Jersey with a basement foundation.
We will look at the New Jersey cost of flood insurance for the NFIP maximum of $250,000 for the (building only) with NO CONTENTS and our recommended deductible of $5,000.
We will be rating this example on the NFIP and a few of our private flood insurance policies, specifically Lloyds flood insurance options in New Jersey.
Cost of Flood Insurance in NEW JERSEY in high-risk flood zone AE
Our example is Ocean City, but the premiums will be the same if in Atlantic City, Brigantine, Avalon, North Wildwood, Wildwood Crest, Hoboken, and many other New Jersey flood ones.
AE flood zone insurance NJ
In our example, the Base Flood Elevation (BFE is 10) and is a home that is built before 1973
