How much is Flood Insurance in Colorado?
Save Money on Colorado Flood Insurance
Understand your options for Colorado Flood Insurance – Explained by real flood experts – the Flood Nerds
I’m Robert Murphy, the Head Flood Nerd at the Colorado-based Better Flood Insurance Agency. We Flood Nerds love our Colorado home and we love to shop for flood insurance and save people money. If you’re tired of rising premiums or just need cheap flood insurance fast, let the Colorado Flood Nerds find you the best coverage and price.
Colorado Homeowner’s Insurance Does NOT Cover Flooding
The average Colorado homeowner’s policy is written through Farmers, State Farm, Allstate, or Progressive. These policies protect your home from fire, wind, and theft. But they don’t cover damage from flooding.
Go ahead, ask your Colorado homeowner’s insurance agent to add a flood endorsement to your policy and watch them laugh. But it’s not funny.
In Colorado you get flood coverage by purchasing a separate flood insurance policy. Problem is, most homeowner’s insurance agents don’t understand Colorado flood insurance. They’ll just plop you into the National Flood Insurance Program (NFIP). It’s the easiest route for them, but usually the most expensive for you. Flood Nerds are Colorado Flood Insurance Experts. We always find you the best coverage and rate and the search is free.
Do You Really Need Colorado Flood Insurance?
Colorado is either flat or covered by mountains and there’s no ocean in sight. Do you really need flood insurance in Colorado? It doesn’t flood in Colorado, right?
The 2013 Colorado floods resulted in estimated damage of over $2 billion. That’s not chump change. 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.
“The weather man is always right – said no one, ever.”
Boy isn’t that the truth. Especially in Colorado. Colorado gets all the precip types: rain, sleet, snow. And then it all melts. The creeks and rivers rise. Sometimes they rise too much. Flooding!
Even if you are in a low-risk area you aren’t in a no-risk area. That’s because 20% of all flooding events in the US every year happen in low-risk areas.
Did you think about buying flood insurance when you bought your house but said “I must not need it because the lender didn’t require it”. Maybe the real estate agent told you flood insurance wasn’t necessary or you think you are flood-proof.
Ever see a big storm coming and think about the risk of flooding? Maybe you didn’t flood this time, but what about the next?
Just because you are in a low-risk area doesn’t mean you have no risk of flooding.
The feds have been collecting flood data for the last 50 years. This data shows that recent major storms resulted in flooding in low-risk areas. And 90% of people with homes that were flooded didn’t have flood insurance.
Don’t buy the “low-risk” lie – buy flood insurance!
What Happens If You Have a Flood But Not Flood Insurance?
This one is easy! When your home is damaged by a flood and you don’t have flood insurance you are stuck paying for the damage.
Flooding is one of the most expensive causes of damage to repair. It can cost $40,000 to $90,000 to fix the house. That’s not including the contents.
Maybe you are betting the government will step in and help.
That’s another lie.
“The nine most terrifying words in the English language are:
I’m from the Government, and I’m here to help.”
Ronald Regan, former California Governor and President of the US
For you to get that government “assistance” in Colorado, this is what must happen:
√ The Governor of Colorado 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.
√ Assistance will be in the form of a loan you MUST pay back.
√ That glorious assistance will be about $5,000.
You’ll land a loan of about $5,000 to cover the average $40,000 to $90,000 of damage.
Now you understand why so many properties are abandoned or foreclosed after having flood damage?
Flooding is the number two natural disaster in Colorado, just after wildfire ~ If you don’t have flood insurance you face financial ruin.
So it is better to have Colorado flood insurance rather than bet on a government bailout.
Flood Maps in Colorado
Many Colorado flood zone maps are more than 40 years old. Since then, areas have been developed and more pavement and buildings mean less ground to absorb water. Out of date maps are a real problem. The NFIP and all federally backed lenders rely on flood zone maps to assess risk, set premiums, and determine who is required to purchase flood insurance.
Bad Colorado flood zone maps leave property owners under or uninsured.
An outdated flood map that doesn’t reflect recent development puts you at risk for flooding without you knowing it.
Even FEMA admits that the flood maps only partially reflect the real risk.
Flood coverage gives you peace of mind and Colorado flood insurance rates aren’t as bad as you think. Colorado flood insurance averages between $405 – $700 a year.
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.
Flood Insurance Options in Colorado
Most homeowners, real estate agents, and lenders don’t realize you have many options when it comes to Colorado flood insurance. But the Flood Nerds know all about getting cheap flood insurance in Colorado. We know more than 5 Ways to Save on Flood Insurance. There are basically two markets for Colorado flood insurance.
National Flood Insurance Program (NFIP)
The NFIP is run by the Federal Emergency Management Administration. This is the government option for flood insurance and many people think it’s the only way to get Colorado flood insurance. That’s because they held a 50-year monopoly on the market and their premiums reflect that dominance.
Some insurance companies are just re-sellers of the NFIP policy. They sell you an NFIP policy with their insurance company’s logo on it. If you have Nationwide flood insurance, State Farm flood insurance, Progressive flood insurance or a policy by any other re-seller you just have NFIP insurance under a private skin. That’s NOT private flood insurance and it is NOT the way to save money on Colorado flood insurance. Is your current policy through a re-seller? Check out this list of companies that resell the NFIP policy.
Private flood insurance market
Colorado isn’t stuck with the NFIP. There is a robust private flood insurance market and you can even tap into the Lloyds of London flood insurance syndicate for Colorado flood insurance. Sometimes you can get real good rates with Lloyds because they spread the risk all over the world and the risk of the entire planet flooding at once is very small. We Flood Nerds like to say, “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 snort and laugh.
But getting the Colorado flood insurance isn’t a laughing matter. There’s so many options and it’s easy to confuse the private flood insurance market with those NFIP re-sellers. But the Flood Nerds know the ins and outs of private flood insurance. Take the easy way out and just ask a Flood Nerd to get you a free quote for cheap flood insurance in Colorado.
We shop all the options for your property in your area of Colorado to get you 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 Colorado
One major factor in the cost of flood insurance for Colorado is the property location and the company that writes the coverage. Premiums for homes in low-to-moderate risk are lower and premiums in high risk areas are higher.
Flood Zone X – Colorado Low-to Moderate Risk Zone
Lenders don’t require flood insurance in this zone. But remember, floods 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 Colorado with the maximum set limits in low risk flood zone areas is $405 – $700 per year.
Flood Zone AE in Colorado
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 Colorado Zone AE really depends on factors that are unique to the structure.