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What’s the cost?

Nobody Seems to Want to Discuss Flood Insurance Pricing. So Let's Discuss It

How much does commercial and residential flood insurance cost? We’re glad you asked!

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What type of flood insurance are you interested in?

Residential

Commercial

So how much does residential flood insurance cost?

At The Flood Insurance Guru, we prioritize flood education. You see we bought a home in a flood zone more than 10 years ago and did not have the information we needed at the time. We were told premiums were going to be 10 times more than they should have been, So for the last 10 years, we have been giving property owners the information they need to make educated flood insurance buying decisions. We want to give you the information you need so you can be confident when purchasing flood insurance.

What type of residential flood insurance do you need?
  • Building coverage

  • Contents coverage

  • Living expenses

How much flood insurance do you need?

As a property owner, it can be challenging to figure out how much flood insurance coverage you need.

Many property owners usually want to go with just whatever the bank is requiring. The problem is this can leave them about 40% below what they really need when a claim happens.

This is why it is recommended that you select enough coverage to replace the home.

What deductible should you pick?

When selecting an insurance plan it has been said the higher deductible you pick the lower the premium will be.

On flood insurance, we have seen that higher deductibles usually don't impact flood insurance premiums much.

You should pick a deductible that you feel comfortable paying. Remember generally each coverage type will have its own deductible.

OK, but really, what can I expect to pay for residential flood insurance?

Flood insurance prices can range greatly depending on a number of factors. Things like elevation, distance to water, and replacement cost are just a few that can impact flood insurance rates. 

It's important to know that no two properties are the same when it comes to flood insurance rates.

So you could possibly see a higher rate or even a lower rate from the national flood insurance average pricing.

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What does flood insurance cost?

Depending on factors like replacement cost, elevation, distance to water, type of flooding, and flooding frequency, you can generally expect a flood insurance policy to fall somewhere around the national average of $1250.

Does this mean you could pay more?

Does this mean you could pay less?

Yes each property has its own unique pricing

How can I save money?

One easy way to save money on flood insurance is by looking at plans offered by the national flood insurance program and private flood insurance companies.

You could look at different deductible plans

You could also look at mitigating your property against flooding

Some carriers offer a multi-year lock to protect rates from increasing

How do flood claims impact my flood insurance rates?

Whether you choose to get flood insurance through the national flood insurance program or a private flood company flood insurance claims could have a major impact on flood insurance rates.

Many private flood insurance companies will not cover a property that has had a flood claim. Others do a 5-year look back on flood claims.

Can flood insurance be built into my mortgage?

Yes if flood insurance is required by your mortgage company it can be built into your mortgage.

The mortgage company would make it part of your monthly payment.

Will being in a required flood zone increase the price?

Traditionally flood insurance rates were determined by what flood zone the building was in. However with the release of risk rating 2.0 by the national flood insurance program flood zones no longer determine rates on FEMA flood policies.

Some private companies do still use flood zones as part of their pricing.

Will paying in full lower my flood insurance pricing?

Generally, flood insurance is required to be paid in full. So this will not lower the pricing for you.

Some private flood insurance companies are starting to allow quarterly billing, but most still require it to be paid in full.

Residential Flood Insurance Pricing FAQ

  • Flood insurance policies are done over a 12-month period.

  • Flood insurance policies can increase after a year.

    In many situations we see policies go up significantly and many times we see them go down significantly.

  • Flood insurance claims can have a big impact on future insurance rates and even having a policy. If you have a national flood insurance program policy you could see an increase in the pricing but the policy generally won't be canceled.

    If you have a private flood insurance policy, it could be canceled at renewal.

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Ready to get the right insurance for the right price?

So how much does commercial flood insurance cost?

At The Flood Insurance Guru, we prioritize commercial flood insurance education. You see we bought a property in a flood zone more than 10 years ago and did not have the information we needed at the time. We were told premiums were going to be 10 times more than they should have been, So for the last 10 years, we have been giving business owners the information they need to make educated commercial flood insurance buying decisions. We want to give you the information you need so you can be confident when purchasing commercial flood insurance.

But some of these questions aren’t so easy to answer. It's probably why many insurance companies do not discuss it on their websites. One of those is “How much does commercial flood insurance cost?”

Commercial flood insurance pricing historically has been very complex, but our goal is to  help simplify it for you

We’re going to do our best to explain to you how commercial flo0d insurance pricing works, so hopefully, you can have an idea of what to expect, before you get a commercial flood insurance policy.

What type of commercial flood insurance do you need?
  • Building coverage

  • Business contents coverage

  • Loss of Use

How much flood insurance do you need?

As a business owner, it can be challenging to figure out how much flood insurance coverage you need.

Many business owners usually want to go with just whatever the bank is requiring. The problem is this can leave them about 40% below what they really need when a claim happens. Most businesses that experience a flood do not generally reopen because of a lack of coverage

 

This is why it is recommended that you select enough coverage to replace the building and coverage to keep the business hoping after a flood.

What deductible should you pick?

When selecting a business flood insurance plan it has been said the higher deductible you pick the lower the premium will be.

On flood insurance, we have seen that higher deductibles usually don't impact flood insurance premiums much.

This is especially the case when you are comparing $5,000, $10,000, and $25,000 deductibles

 

You should pick a deductible that you feel comfortable paying. Remember generally each commercial flood insurance coverage type will have its own deductible.

OK, but really, what can my business expect to pay for commercial flood insurance?

When it comes to commercial flood insurance pricing can rage a lot based on the risk and commercial coverages selected.

It's important to know each risk has its unique rating, so each commercial flood insurance policy is going to be different.

Three things that can have the biggest impact on ratings are the replacement cost of the building, distance to water, and elevation of the building.

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How much does commercial flood insurance cost?

Depending on factors like replacement cost, elevation, distance to water, type of flooding, and flooding frequency, you can generally expect a commercial flood insurance policy to fall somewhere around the national average of $2000.

Does this mean you could pay more?

Does this mean you could pay less?

Yes each commercial property has its own unique pricing

How can I save money?

One easy way to save money on commercial flood insurance is by looking at plans offered by the national flood insurance program and private flood insurance companies.

You could look at different deductible plans

You could also look at mitigating your property against flooding

Some carriers offer a multi-year lock to protect rates from increasing

How do claims impact my commercial flood insurance rates?

Whether you choose to get commercial flood insurance through the national flood insurance program or a private flood insurance company flood insurance claims could have a major impact on flood insurance rates.

Many commercial private flood insurance companies will not cover a property that has had a flood claim. Others do a 5-year look back on flood claims.

Can flood insurance be built into my commercial loan payment?

Yes if flood insurance is required by your mortgage company it can be built into your commercial mortgage.

The mortgage company would make it part of your monthly payment.

Will being in a required flood zone increase the price?

Traditionally flood insurance rates were determined by what flood zone the building was in. However with the release of risk rating 2.0 by the national flood insurance program flood zones no longer determine rates on FEMA flood policies.

Some private companies do still use flood zones as part of their pricing.

Will paying off my commercial loan lower my pricing?

While paying off your commercial loan may lower your overall business expenses for you, it will not impact the flood insurance pricing.

It would just remove the requirement of flood insurance. However, we still recommend carrying it as 30% of flooding occurs in low-risk areas.

Commercial Flood insurance pricing FAQs

  • Flood insurance policies are done over a 12- month period.

  • Commercial flood insurance can increase after a year. As much flooding that's happening these days it's not uncommon to see flood insurance prices increase.

    We are also seeing commercial flood policies decrease as flood risks are changing.

    It's important to know that the national flood insurance program has a maximum statutory increase of 18%.

    However many private flood insurance companies do not have this limit on increases.

  • Commercial flood insurance claims can have a big impact on future insurance rates and even having a policy. If you have a national flood insurance program policy you could see an increase in the pricing but the policy generally won't be canceled.

    If you have a private flood insurance policy, it could be canceled at renewal.

Ready to get the right insurance for the right price?