Most flood insurance policies are purchased through the National Flood Insurance Program. This will almost always be the least expensive way to get coverage because the NFIP program rates are subsidized by the government. The rates are set by the government so most people assume that shopping around will not result in savings. That is true to a point, but there may be some options to reduce the cost. Here are some suggestions.
- Some agency’s charge an agency fee on top of the policy cost. This should not be necessary because the agent gets a commission on the sale. Get your policy from a company that does not charge an additional policy fee.
- Different deductibles are available. Your premium will be lower if you go with a higher deductible.
- Consider the level of risk for your property. If you are in a favorable area, where the worst case would be a few inches of water in your home, you could insure for less than the full value of your property to save on the cost. This involves risk so consult with your agent if you are considering a lower coverage level.
- In some higher risk zones you might be able to gat a discount with an elevation certificate. If you don’t have a certificate ask you agent about that.
- There are a few carriers that will combine flood coverage with your hazard policy, especially with mobile or manufactured homes. Ask you agent about that.
- Flood zones are constantly being redrawn. It is not unusual for an area to be mapped to a higher risk rating. When you already have a policy you can be “grandfathered” to the previous zone rating, if your policy doesn’t lapse. So don’t let your coverage lapse!