Policies with higher coverage amounts, for which insurers are on the hook for larger payouts in a flood, will come with a higher premium. The amount of coverage your policy has - meaning how much it will pay out in the event of a flood - is another big factor in setting your flood insurance premium. It’s always important to compare both options when getting flood insurance, especially if you’re on a tight budget. Private policies may be more customizable and can often be bundled with other insurance plans, which could mean lower-cost coverage. You can get a flood insurance policy through the National Flood Insurance Program or through a private insurer. Learn More: Flood Insurance: The Ultimate Guide for Homeowners Policy type ![]() These factors “provide a deeper understanding of the building’s individual flood risk” and allow insurers to set more accurate premiums based on it, according to FEMA. Number of floors and height of the first floor Here are just a few of the building characteristics FEMA says will come into play:įoundation type and location (underground, at ground, above ground) How your home was built is a factor, too, as this can influence how likely it is to be damaged in a flood. Generally speaking, the higher the risk of flooding, the higher the premium will be. Insurers consider a home’s distance to potential flooding sources (oceans, lakes, rivers, etc.), the elevation of its lot, and other community characteristics when evaluating its flood risk. Flood riskĪ home’s location - and specifically how at risk it is for flooding - plays a huge role in the cost of flood insurance. Many factors can influence the cost of a flood insurance policy, including things like the home’s location (and the risk of flood it carries), the type and amount of coverage you’re purchasing, the age and structure of your home, the policy’s deductible, and more. Some private flood insurance coverage options exist, although not everyone may qualify.Factors that determine the cost of flood insurance It is always essential to shop around when looking for the best coverage for you. Holehouse also says this new rate assessment will significantly impact homeowners with state-run Citizen Property Insurance.ĭuring a special session in Tallahassee last year, lawmakers passed a bill requiring citizen policyholders in a flood zone to have matching flood insurance for their policy. And so really those coastal type communities are thfive-to-10-yearst affected," explained Holehouse. Pete Beach and Treasure Island are seeing that 200% to 400% over that 5-to-10-year horizon. But when you look at a Tierra Verde, that is seeing it at the 600% per year. They're seeing some increase, probably in the 25 to 40% type range. "A lot of the more inland areas, so take like a Pinellas Park as an example. Holehouse also tells Jamison that although waterfront homes are feeling a big jump in their rate cost, inland homes are also seeing an increase. However, Jake says under the new methodology, the actual risk-based insurance cost for this home exceeds $11,000. Pete, where the average cost of coverage is around $630. This new methodology throws out flood zones and bases your rate on more data to better assess your flood risk.ĪBC Action News Anchor Jamison Uhler contacted Jake Holehouse from HH Insurance Group to learn more about what this means for homeowners.įirst, Holehouse broke the new rates down by location for example, a home along Bridge Street in Tampa might currently be paying around $430 for flood insurance.īut under this new methodology, the cost is more than $3200. ![]() Previously your insurance rate was based on your flood zone and your elevation. The new estimates were announced after the "National Flood Insurance Program" switched to a new method to calculate flood insurance rates.Ī recent report by FEMA shows many homeowners from the Tampa Bay area could see their flood insurance rates double. This comes as hurricane season is just about to begin on June 1. Florida is already in an insurance crisis, but the flood insurance rate could rise again.
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