Your home is a major investment. It is important that you keep it protected. Many people believe that their homeowners policy will cover flood damage but this is not the case. Let’s talk about what flood insurance is and how much it will cost.
What is flood insurance?
Flood insurance covers losses to your property caused by flooding. The National Flood Insurance Program (NFIP) defines flood as “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land (or of two or more properties, of which at least one is your property)”. Flood insurance can cover losses to the physical structure of the building and its contents. A typical flood policy will cover structural damage to the building and its foundation, electrical and plumbing systems, refrigerators, built-in appliances, and more.
What factors affect the cost of your flood insurance policy?
Flood insurance, like many other insurance policies, is not one-size-fits-all. The cost of our flood policy depends on many factors.
- Flood Risk is the most significant factor in the cost of your flood policy. People who live in moderate to low-risk areas are recommended to have flood insurance. If you live in a high-risk or coastal area, you may be required to have a flood policy. People who live in a low-risk area can expect to pay less than a person who lives in a high-risk area.
- Age of Property – Older homes built before modern construction materials and techniques may be more susceptible to damage caused by flooding. They can also be more costly to repair. This means people with older homes may expect to pay more.
- Type of Coverage – Flood insurance has two coverage options: the property’s structure and its contents. Policies that include both coverage options may be more expensive. Although, it will provide you with more protection if a flood damages your home.
How much does it usually cost?
According to FEMA, an annual flood insurance policy from the National Flood Insurance Program (NFIP) will cost around $700. The average Maryland resident pays $617 annually for flood insurance. The cost of flood insurance depends greatly on where you live, the age of your home, and your coverage options.
You do not need to live near water to be at risk for a flood. Storms, melted snow and backed up drainage systems can all cause flooding. Contact one of our Avery Hall agents today at 410-742-5111 to learn more about our plans.