Flood insurance is calculated by considering the factors listed above, in addition to the elevation of your home and where it’s located. Nearly all of South Carolina is in a flood risk zone, but some areas are higher risk than others.
NFIP Limits for Flood Insurance Coverage. Building Structure: $250,000Personal Property: $100,000Valuables and Business Property: Up to $2,500 for fine art, collectibles, furs, jewelry and business property combinedAdditional Living Expenses: No coverage.
What determines if you have to pay flood insurance?
The outstanding principal balance of the loan. The maximum amount available under the NFIP for the type of structure you own. For homes, that amount is $250,000The insurable value of the property, or the home’s rebuild cost.
A Zones: Inland flood zones. Areas that are not near the coast but have a risk of flooding. Areas that see a trend of wave action and are therefore at higher risk of flooding. X Zones: These areas are not expected to flood or are remote areas. However, 30% of all flood losses paid by FEMA are for properties located in X Zones.
This begs the question “What is the estimated cost of flood insurance?”
Unfortunately, it’s the opposite. It is estimated that between 85% and 95% of homeowners do not have flood insurance, according to the National Association of Insurance Commissioners. Some homeowners worry that flood insurance is too expensive. The average annual flood insurance premium from the NFIP was $700 in 2019.
Do flood insurance rates vary by company?
Shopping for the best flood insurance company is different from shopping for the best homeowners insurance because rates do not vary between flood insurance companies that provide NFIP policies. Prices are set by the government, meaning there is no cheapest flood insurance company for NFIP policies.
Is flood insurance a good investment?
While not every homeowner needs flood insurance, it may be a smart investment to make regardless of where you live. According to The Federal Emergency Management Agency (FEMA), 25% of homeowners who have filed a flood damage claim do not even live in a flood zone.
When choosing the best home and contents insurance you should consider not just the price but also any excess payable in case of a claim and any additional cover that comes with the policy. You will pay more for insurance if you live in a flood area.