Tips for Making Flood Insurance More Affordable

Securing affordable flood insurance coverage is important for homeowners looking to protect their properties without straining their budgets. While flood insurance costs are influenced by a number of factors, there are certain steps that can be taken to potentially help reduce premiums (consider discussing these factors with your insurer prior to purchasing a policy):

Help Mitigate Flood Risks through Property Improvements

Investing in property improvements aimed at reducing flood risks can sometimes lead to lower insurance premiums. For example, consider raising certain aspects of the home's elevation above the Base Flood Elevation (BFE) to help reduce flood risk. Elevate electrical systems, HVAC units, and other critical components to demonstrate a commitment to mitigating potential damages. A homeowner may be able to save on premium costs for every foot the structure is raised above the BFE.

Additionally, ensuring that the property has effective drainage systems, including proper grading, gutters, and downspouts, to redirect water away from the foundation may also help reduce premium costs.

Understand and Comply with Local Building Codes

Insurers may offer lower premiums for properties that meet or exceed local building code requirements, so it can be useful to be informed about local building codes and regulations related to flood mitigation. Adhering to these codes and regulations during construction or renovations can demonstrate compliance with recommended flood mitigation measures and therefore may result in lower premiums.

Consider Flood Zone Designations

Explore the flood zone designation of the property and consult FEMA's Flood Insurance Rate Maps (FIRMs). If the property is on the edge of a high-risk flood zone, elevating the structure or implementing flood mitigation measures could potentially move it into a lower-risk zone, possibly resulting in reduced premium amounts.

Compare Quotes from Different Insurers

Request quotes from multiple providers and compare their coverage options, deductibles, and rates. Working with an experienced insurance broker like Acrisure that specializes in flood insurance can help a homeowner navigate the market and find the right policy.

Balance the Deductible against the Annual Premium

Choosing a higher deductible can lower the annual premium amount but may result in paying more out of pocket when covered events occur. Assessing financial capabilities can help determine if increasing the deductible is a reasonable consideration for helping to reduce premium amounts.

Leverage Community Discounts

Check if the community participates in the National Flood Insurance Program's Community Rating System (CRS). Communities that implement flood mitigation measures and engage in floodplain management may be eligible for discounted flood insurance rates.

Remember: Although reducing the costs of flood insurance can be advantageous for many reasons, it's important to make sure you obtain the right coverage for your property's specific needs. Evaluate the property's specific flood risks to help ensure that the home has adequate insurance coverage in place.