
What (Really) Goes Into Flood Insurance NJ That Works
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 Cowboy State has seen a fair share of flooding, and there is likely more coming.
We believe that 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 is looming, or we have heard on the news that there is flooding forecasted or happening currently too close to our home.
If your home or business is in a flood zone, that is considered low flood risk area. Sadly, many homeowners decide to forgo purchasing coverage because they believe they are safe from flooding. Some real estate agents and some 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. In 80 percent of these individuals, they had water in their home 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 hear often that people believe that the government will help, and this is true. However, there are a few things that 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 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 in the form of a loan and you will need to pay it back. Are you willing to gamble away your financial future by forgoing flood insurance coverage?
https://www.bloomberg.com/graphics/2017-fema-faulty-flood-maps/
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, then 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 for 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” then it really 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 areas flood risk can leave property owners under or uninsured.
How much is flood insurance in New Jersey?
There are many options available in New Jersey regarding flood insurance, but they basically 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, which 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
If you have Nationwide Flood Insurance, State Farm Flood Insurance, Progressive Flood Insurance, or any of the of the logos below then 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.
https://www.fema.gov/wyo_company
New Jersey private flood insurance market
There are alternatives to the NFIP or government insurance. It is called Private flood insurance most notably Lloyds 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. If you are ready to have us do the work for you, please click here.
Our shopping does include the NFIP because sometimes we find that with government subsidies you can get a much better premium.
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Lloyds of London Flood Insurance New Jersey Market
New Jersey is fortunate to have many Lloyds of London flood insurance options. Although many Lloyds 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 and is attributed to have invented the very first modern insurance model. Unlike most of its competition, Lloyds of London is not really a company but rather a corporate body. This structure works quite well since it has been around for over 330 years. Lloyds operates under multiple financial backers that all pool their capital to spread the risk.
I have two blog posts that take a deep dive into Lloyds of London and what they mean to New Jersey ’s flood insurance market. If you are interested, the links are below.
Lloyds of London Flood Insurance
FEMA vs Private Flood Insurance
Lloyds also insures the world for flood insurance, meaning they cover flooding events in India, Australia as well as much of Europe. You see the “game” of insurance is to spread your risk since Lloyds is worldwide.
My joke here is that Lloyds is banking on Gods promise that he won’t flood the entire world again, …..so they won’t have to pay out the whole worlds flood claim.
How much does flood insurance cost in New Jersey?
There are many factors that go into getting the cost of flood insurance for New Jersey. If your home is in what is considered low-to-moderate risk, you can get a heavily subsidized policy though 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 grid below):

Here a link if you want to really dig into this one. Be ready for an eye chart because every option is public record and should be standardized accost whoever writes these policies.
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.
https://www.fema.gov/media-library-data/1523307331106-4cf9726b2eb04c3471a3e9d37a58fa6a/09_prp_508_apr2018.pdf

If your property is in 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 are going to try to give you an idea for 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, as well as on 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 in 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

NFIP option in New Jersey Flood Zone AE
NFIP – Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible
NFIP Annual premium in High-Risk flood zone is $3,824.00
This option is what we see if the property has had a flood loss before, and either doesn’t have an Elevation Certificate applied or the Elevation certificate showing that the lowest floor is 4 feet under the BFE for the area. You can use 10% of your coverage to cover other structures on your property
New Jersey Private flood insurance – Lloyds of London Flood Insurance (option 1)
Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible
Lloyds of London (option 1) Annual premium in High-Risk flood zone is $ 868.75
This option is great, and we are very happy when we can get this option. They can be a bit choosey about what risk they will accept and will not take anything that has had a flood loss. They do offer coverage for basements, about $2,000 for loss of use, $2,000 for other structures, but they can’t increase this coverage. They do not require an Elevation Certificate to rate.
New Jersey Private flood insurance – Lloyds of London Flood Insurance (option 2)
Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible
Lloyds of London (option 2) Annual premium in High-Risk flood zone is $ 911.25
This option is great, and we are very happy when we can get this option for our clients as well. They seem to be writing almost all risks; however, they do not write any property that is in a designated floodway or has the depth of -4 under the BFE. In our example, with our BFE being 10, if the lowest floor is 6, then they will not accept this risk. They will not take anything that has had a flood loss. They do offer limited coverage for basements and do not require an Elevation Certificate to rate, and as a percentage of coverage for loss of use. If you want coverage for other structures, then that will need to be added.
Private Flood insurance option (option 3) Not Lloyds
Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible
Annual premium in High-Risk flood zone is $2,459.75
This option will take properties that have had one flood loss as long as it has been more than five years, and the payout was under $100,000 on the claim. Their coverage matches the NFIP. They will write practically all risks, don’t need an elevation certificate to rate, and are a bit lower in premium than the NFIP.
Private Flood insurance – Lloyds of London (option 4)
This option must be written on the Replacement Cost Value (RCV) of the building, otherwise there is a co-insurance penalty that kicks in. So, $250,000 might be a bit low in California, but to keep this going, let’s just use that for this option
Coverage of $250,000 (RCV) building coverage, No Contents and $5,000 deductible
Annual premium in High-Risk flood zone is $718.20 (great price).
This options rating system is all over the board. Sometimes we get a crazy great price, but other times the premium is way higher than the NFIP will consider taking a property that has had one flood loss before as long as it has been more than ten years and the payout was under $50,000 on the claim. Their preferred coverage is at replacement cost, which is a bit different from some of our other Lloyd’s flood options. We usually reserve this one if the property doesn’t fit into any of our options above. We can adjust coverages to control premium. As mentioned before, this underwriters’ rates are all over the board. It is worth shopping through to make sure we are getting you the best premium we can. They don’t need an elevation certificate to rate.
Private Flood insurance – Lloyds of London (option 5)
Coverage of $250,000 (RCV) building coverage, No Contents and $5,000 deductible.
Annual premium in High-Risk flood zone is $1,231.25
This option came out of the company that used to run the NFIP program, so the coverage almost exactly matches the NFIP coverage with two differences. They offer living expenses which will cover your cost, when you are displaced from your home during repairs (most Lloyds flood policies offer this). They also offer swimming pool clean out, which is kind of unique so if you have a pool ask for this coverage.
Private Flood insurance – Lloyds of London (option 6)
Coverage of $250,000 (RCV) building coverage. No Contents and $5,000 deductible.
Annual premium in High-Risk flood zone is $516.04
This options rating system is also all over the board. Sometimes we get a crazy low price; other times the premium is way higher than the NFIP. They will consider taking a property that has had one flood loss before as long as it has been more than ten years and the payout was under $25,000 on the claim. They have been rumored to give a low price the first year and then non renew following years or sometimes they jack the price way up so we will watch them. They have a slick system, and their underwriting is managed by a 3rd party, which also seems to be a glitch sometimes.
There are more options coming online every day, and we are working to be looking into every viable option.

Currently, New Jersey has 224,541 NFIP policies in force to date with the total cost of $215,735,820. That would make the average flood rate for New Jersey $961. Of course, some will pay more, and some will pay less.
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Flood Maps NJ
Hello, New Jersey! Thanks for visiting our page for all your flood insurance needs.
Let’s start off with a group of areas that include Absecon, Galloway, and Hamilton, New Jersey, where the average flood rate is $854. The premiums in these areas add up to $409,967 with 480 flood policies in effect.
Atlantic City, New Jersey is up next! Atlantic City has 7,021 flood polices in force with $6,364,954 in written premium. The average flood rate here is $907.
In Brigantine, New Jersey, we find an average flood rate of $646. The premiums add up to $4,484,105 with 6,945 in active flood policies.
The average flood rate rises to $690 in Egg Harbor, New Jersey. Egg Harbor has 791 flood policies in effect with $545,406 in premiums.
$849 is the average flood rate for Linwood, Mullica, and Pleasantville, New Jersey. These areas have a combined premium total of $448,018 and 528 flood policies in force.
Longport, New Jersey has 1,418 active flood policies with $1,363,476 in premiums. The average flood rate for Longport is $962.
In Margate City, New Jersey, the premiums total $4,940,099 with 5,479 flood policies in effect. Margate City has an average flood rate of $902.
925 is the total number of active policies in Somers Point, New Jersey. The premiums here total $750,127 which allows the average flood rate to be $811.
The premiums add up to $3,982,089 in Ventnor, New Jersey. Ventnor has an average flood rate of $856 which includes 4,654 active flood policies.
Let’s look at a group of areas that include Bergenfield, Dumont, and East Rutherford, New Jersey, where the average flood rate is $2,247. The policies in these areas number 403 with $905,598 in written premium.
Edgewater, New Jersey has 2,142 active flood policies. The premiums here total $730,695 which allows the average flood rate to be $341.
The average flood rate jumps to $1,886 in Englewood, New Jersey. Englewood has 431 flood policies in effect with $812,823 in flood premiums.
Looking at Fair Lawn and Garfield, New Jersey, we see there are 449 flood policies active with $1,061,787 in total premiums. The average flood rate for these areas is $2,365. Give us a call to check your rates!
$1,544 is the average flood rate for Hackensack, New Jersey. Hackensack has 662 active flood policies with $1,022,432 in written premium.
Let’s check out a group of areas that include Hillsdale, Lodi, and Lyndhurst, New Jersey where the active flood policies number 689 with $1,135,517 in flood premium. The average flood rate for these areas is $1,648.
In Little Ferry, New Jersey, the flood premium is $1,753,268 with 907 flood policies in effect. The average flood rate for Little Ferry is $1,933.
349 flood policies are in effect in Mahwah and Moonachie, New Jersey. These areas have $759,715 in flood premiums which allows the average flood rate to be $2,177.
The New Jersey Meadowlands, New Jersey has an average flood rate of $1,603. New Jersey Meadowlands has 3,082 active flood policies with $4,940,824 in written premium.
Let’s look at a group of areas that include New Milford, Ramsey, Ridgefield Park, Ridgefield, Saddle Brook, and Teaneck, New Jersey where the premiums add up to $2,054,751 with 1,266 flood policies in effect. The average flood rate for these areas is $1,623.
Our next group includes Oakland, Paramus, Park Ridge, Ridgewood, Rochelle Park, Rutherford, Wallington, and Westwood, New Jersey where the average flood rate is $1,713. The active flood policies here number 1,988 with $3,406,392 in written premium.
Burlington, New Jersey has 976 flood policies in effect with $1,430,637 in total premium. The average flood rate in Burlington is $1,466.
Another group of areas include Cinnaminson, Delanco, Delran, Mount Laurel, Palmyra, and Pemberton, New Jersey. These areas have an average flood rate of $1,003. The total number of active flood policies is 1,065 with $1,068,323 in flood premiums.
The next group of areas in New Jersey are Evesham, Medford, Moorestown, Southampton, and Willingboro. In these areas the flood premiums total $542,463. The average flood rate is $650 which include 835 active flood policies.

$1,953 is the average flood rate in Camden, New Jersey. Camden has 611 flood policies in effect with $1,193,123 in total premiums.
When we study Cherry Hill and Winslow, New Jersey, we find that the flood premiums add up to $355,871. These areas have 365 flood policies active which allows the average flood rate to be $975.
In Pennsauken and Voorhees, New Jersey, the flood policies number 306 with $364,279 in written premium. These areas have an average flood rate of $1,190.
5,057 flood policies are in effect in Avalon, New Jersey. Avalon has $3,508,153 in flood premiums which allows the average flood rate to be $694.
Next up is Cape May Point, New Jersey where the average flood rate rises to $814. The premiums here total $351,690 and the active flood policies number 432.
The average flood rate rises to $967 in Cape May, New Jersey. Cape May has 2,628 flood policies in effect with $2,540,924 in total premiums.
Lower, New Jersey has a lower average flood rate coming in at $584. Lower has 2,598 active flood policies with $1,516,066 in written premium.
$907,021 is the total flood premiums in Middle, New Jersey. Middle has 1,092 flood policies in effect which allows the average flood rate to be $831.
The active flood policies number 6,299 in North Wildwood, New Jersey. North Wildwood has an average flood rate of $721 which includes $4,541,748 in flood premiums.
Ocean City, New Jersey has 16,874 flood policies in effect. The average flood rate in Ocean City is $638 which includes $10,757,470 in total premium.
The flood premium totals $3,333,430 in Sea Isle City, New Jersey. The active flood policies number 6,514 which allows the average flood rate to be $512.
In Stone Harbor, New Jersey, the active flood policies number 2,699. The average flood rate in Stone Harbor is $897 which includes $2,421,225 in premiums.
The average flood rate rises to $1,007 in Upper, New Jersey. Upper has 470 flood policies in effect with $473,262 in total premiums.
We’ll look at a large group of areas that includes West Cape May, Livingston, Maplewood, Millburn, Nutley, Orange Township, Bayonne, Guttenberg, and Harrison, New Jersey. These areas have an average flood rate of $1,089. The premiums in these areas add up to $2,503,875 and the active policies number 2,299.
478 is the total number of active flood policies in West Wildwood, New Jersey. The premiums total $546,568 which allows the average flood rate to be $1,143.
The average flood rate drops to $540 in Wildwood Crest, New Jersey. Wildwood Crest has 4,321 flood policies in effect with $2,333,852 in premiums.
Our final area of New Jersey is in Wildwood where the flood policies total 3,671. The premiums add up to $2,900,597 which allows the average flood rate to be $790.
In Downe and Belleville, New Jersey, the average flood rate is $765. The number of active flood policies total 552 with $422,087 in total premiums.
Bloomfield, New Jersey has 475 flood policies in effect with $845,268 in written premium. Bloomfield has an average flood rate of $1,780.
Next up is Fairfield, New Jersey where the average flood rate jumps to $2,170. The premiums total $2,204,559 with 1,016 flood policies in effect. Give us a call Fairfield!
The following areas have an average flood rate of $1,898: Montclair, Newark, West Orange, and Greenwich, New Jersey. The premiums add up to $1,814,448 with 956 active flood policies.
Hoboken, New Jersey has 9,650 flood policies in effect with $7,640,652 in written premium. The average flood rate in Hoboken is $792.
The average flood rate drops to $749 in Jersey City, New Jersey. The premiums add up to $5,534,041 with 7,385 in active flood policies.
In Kearny and Lambertville, New Jersey, the premiums total $895,927 with 352 active flood policies. These areas have an average flood rate of $2,545. Give us a call to check your flood rates!
506 flood policies are in effect in North Bergen, New Jersey. The flood premiums add up to $292,994 which allows the average flood rate to be $579.
Weehawken, New Jersey has $452,386 in written premium. Weehawken has an average flood rate of $597 which includes 758 in flood policies.
$229 is the average flood rate in West New York, New Jersey. The policies number 1,282 with $293,472 in flood premium.
When we look at another group of areas that include Ewing, Lawrence, Carteret, Dunellen, East Brunswick, Monroe, Old Bridge, Perth Amboy, South Brunswick, South Plainfield, and South River, New Jersey, we find $3,193,817 is the flood premium total. These areas have 2,355 active flood policies which allows the average flood rate to be $1,356.
The average flood rate in Hamilton, New Jersey is $1,327. The premiums add up to $698,234 with 526 flood policies in effect.
Let’s check out another group of areas that include Princeton, Trenton, West Windsor, Edison, Middlesex, Piscataway, Sayreville, and South Amboy, New Jersey where the active flood policies number 1,741. The premiums total $2,520,577 which allows the average flood rate to be $1,448.
In Woodbridge, New Jersey, there are 430 flood policies in effect. The average flood rate in Woodbridge is $1,118 which includes $480,940 in written premium.
240 flood policies are active in Aberdeen and Atlantic Highlands, New Jersey. The premiums in these areas total $231,533 which allows the average flood rate to be $965.
There is $437,547 in total premium in Asbury Park, New Jersey. The active flood policies number 527 which allows the average flood rate to be $830.
Avon-By-The-Sea, New Jersey has an average flood rate of $662. The premiums here total $273,597 with 415 flood policies in effect.
Next up is Belmar, New Jersey where there are 896 flood policies active. The average flood rate in Belmar is $585 which includes $524,073 in written premium.
In Bradley Beach and Brielle, New Jersey, the average flood rate is $580. The premiums here total $373,248 with 643 flood policies in effect.
