Buying flood insurance
Floods are often the most damaging part of a hurricane. If your property is located in a high-risk flood area, your mortgage lender might even require that you purchase flood insurance.
There are two sources for flood insurance:
- Through the National Flood Insurance Program (NFIP), a program operated by the federal government.
- With private flood insurance.
The majority of homeowners in the United States who have flood insurance purchase their policies through the NFIP. It is managed by the Federal Emergency Management Agency (FEMA). The average cost of an NFIP flood policy was $707 in 2017 and the average amount of flood coverage was $252,261, according to the Insurance Information Institute.
Flood insurance rates can be higher depending on your property’s risk level as well as the amount of coverage and deductible you choose.
Private flood insurance is often available as an alternative to NFIP insurance. In some cases, private insurers may be able to offer cheaper rates. It’s a good idea to compare quotes from both the NFIP and private insurers if you have the option.
