Is flood insurance worth the cost?

Florida is known for beautiful beaches, sunny weather, and some of the United States’ most appealing tourism. From the Florida Everglades to the Gulf Coast and throughout Central Florida, desirable locations abound in our home state impart to its easy access to water. However, Florida’s abundance of coastal regions and lakes also means that its residents are constantly at risk for flooding. According to the Florida Department of Environmental Protection Secretary Noah Valenstein, Florida needs to be prepared for as much as 2.5 feet of sea level rise by 2050. This rise in sea level will likely impact 300,000 homes. That could cost Florida homeowners an estimated $145 billion in property damages. If you are reading this article, you are likely wondering if flood insurance is worth purchasing for the average Florida homeowner. Let’s find out!
Flood Insurance Worth It

What Is Flood Insurance?

Let’s start with the basics. Flood insurance provides financial protection for your home, business, or personal property that is damaged during a flood. Traditionally, flood insurance is purchased via a separate policy, aside from your standard homeowners insurance policy. Certain homes are required to purchase flood insurance policies given their location in Florida’s flood plains. The Federal Emergency Management Agency (FEMA) has maps available to determine if your area is at risk for flooding. You may access the maps here. Mortgage lenders use FEMA-designated flood zones to decide if your home or business is required to carry a flood insurance policy at the time of purchase. As a Florida homeowner it is important to note that carrying a flood insurance policy is oftentimes worth the costs, even if you are not located in a FEMA-designated flood zone.

What Does Flood Insurance Cover?

Just like all types of insurance, not all flood insurance policies are created equal. The extent of coverage is dependent upon the individual policy you decide to purchase. Flood insurance coverage is broken down into two basic categories: structural and personal.

Structural Damage: This type of flood insurance covers structural and integral parts of your home like electrical systems, HVAC systems, roofing, foundation, flooring, walls, and mold removal. This policy will usually cover repairs, or the cost to rebuild.

Personal Property: Personal property damage can cover things such as furniture, electronics, clothing, appliances, artwork, and non-structural areas of the home such as carpeting. If you wish to cover high value items such as family heirlooms or collectibles they should be listed with your insurance provider prior to any incident.

What Does Flood Insurance Cost?

Of course, flood insurance policy costs are subjective to coverage limits and location. However, the average cost of flood insurance in the United States in 2019, according to FEMA, was $700. There are a variety of factors that impact your flood insurance quote. Your provider takes these into consideration when calculating home much your annual or monthly flood insurance costs will be. Factors taken into consideration are:

  • Age of your home
  • Flood risk
  • Number of floors
  • Contents
  • Deductible

How Do I Buy Flood Insurance?

Before buying flood insurance you should always compare policy coverages and rates of your available options. Although this could take a considerable amount of time, especially if you are unfamiliar with reviewing and comparing policies. Need a little help? Kirby Soar Insurance, located in Plant City, is here for you! We know your time is important and we’re available via phone Monday through Friday from 9am-5pm and via email anytime. You can request one of our fast quotes online here.

Other Things You Should Know About Flood Insurance

FEMA reports that, between 1996 and 2019, 99% of U.S. counties were affected by at least one flooding event. That means a flood policy isn’t something you should consider. It is something you should see as a necessity. While the article above covers the basics of flood insurance, there are other things you should know as well.

  • Renters can purchase flood insurance.
  • Businesses can purchase flood insurance.
  • Don’t forget to compare deductibles. (The amount you have to pay before your insurance kicks in.)
  • If you are buying flood insurance through a private carrier it is helpful to have your Elevation Certificate
  • Know the difference between replacement cost values (RCV) versus actual cost values (ACV).
Flood Insurance In Florida

To learn more about flood insurance policies and coverage for your home, rental, or business contact Kirby Soar Insurance today. If you live in Polk or Hillsborough County, FL, including the areas of Plant City, Valrico, Lakeland, Mango, Brandon, Fishhawk, Bloomingdale, and Mulberry our professional staff at Kirby Soar Insurance is here to help you. Contact us by phone at (813)752-1680 or on our website.