Floods occur in Florida almost every year. The effect of floods is felt more in coastal areas compared to those in in inland areas. Even then, you can never predict how much damage your property can incur when it floods. A rough estimate suggests that an inch of flooding is enough to cause damages worth thousands of dollars. In comparison, a flood insurance quote in Miami is just a small fraction of the cost for an entire year of protection. That does sound like the better deal, right?
Many factors can increase or decrease the value of the annual premium you pay for a flood insurance policy. According to the Federal Emergency Management Agency, the following factors affect the final cost of your flood insurance premium the most:
Designated Flood Zone:
The entire state of Florida is a designated flood-risk zone. Even then, there are certain codes given to different regions according to the risk floods pose over there. These comprise zones B, C, and X, which have a below 1% chance of flooding in a year. Zones A, AE, AH, AO, and A1-A30 have a 1% chance of flooding in a year, and over 26% chance of flooding over a period of 30 years. Zones V, VE, V1-V30 have a greater than 1% risk of flooding in a year.
Insurance Type:
National Flood Insurance Program offers Miami residents a fixed coverage plan with a capped limited, in return for a nominal sum of fee. The coverage areas are fixed too. In comparison, private vendors offer the option to customize insurance plans as they need them. The insurance premium goes up or down according to inclusions and exclusions and maximum insurance value sought.
Location of Your Home:
Coastal areas have a higher insurance premium value than those living far away from coasts. The elevation of the home also helps reduce the final premium value further. You can ask your insurer about this before finalizing your flood insurance policy.
Age and Design of Your Home:
The age of property also matters a lot in considering the insurance premium value. The kind of material you have in the walls, flooring and roofs also hold the weight while deciding the final value. Moreover, if you have flood deterring installations in your home, your insurance premium will be lower than even your immediate neighbors.
Immovable Contents of Your Home:
Lastly, the positioning of utilities inside your home can affect the final insurance premium value too. If you have them placed at a certain elevation, they will stay safe when it floods. As a result of that, the premium value will come down too.
You can discuss all about the flood insurance risk in your area and what you need to do about it with your nearest insurance company. You could get a free quote from them before you even go into the detail of the policy. This can help you decide if you want their policy or not. Call them today and discuss what kind of coverage you seek to know more.