How to save on flood insurance?
Flood insurance is typically one of the more expensive types of insurance policies that homeowners are presented with. But, the high cost shouldn’t stop you from choosing to protect your house. It is estimated that even as little as an inch of water can cost you an excess of $15000 in damages. That figure can vary depending on where you live. Also, given that flooding is more common than say an earthquake, it makes perfect sense to prepare for the worst.
Here are six effective ways by which you are assured to save big on flood insurance without making any real compromises.
1. Do some shopping around
Many falsely believe that there’s only one type of flood insurance. Nothing could be further from the truth. If you shop around, you’ll find out that you have more options than you’d earlier thought. Although there primarily are two types of flood insurances, namely public and private, different insurance providers give you different quotes and coverage. Private insurance policies offer guaranteed protection, maximum coverage and are often backed by the state. You should consider a private flood insurance if you reside in an area that is deemed ‘high risk’. Now, on the other hand, public insurance policies are known to offer lower premiums incase of areas that are known to frequently have flooding issues as opposed to private insurance policies.
2. Reach out to an agent
It is highly advisable to have a reliable agent by your side who knows his trade. Someone who’s well versed in calamities such as floods for instance, to help you examine risks and uncertainties, that ensure you get the best possible coverage. Such agents can also help you get the best discounts on home and flood insurance, and help negotiate a better deal than say the current market rate.
3. Elevate your core appliances
Insurers will by default lower your premium if your utilities are placed well above the ground. To make the most of this, we highly recommended that you place your air conditioner, heating, plumbing, etc. on a raised surface. Thus, ensuring that the high-priced core appliances of the house are kept away from the surface, which is likely to get damaged by the flood.
4. Elevate the whole space.
This might cost you a fortune, but it surely does the job of drastically lowering the price of your premium and also protecting your house from potential flooding. Astonishingly, you can cut the premium in half by just elevating your home one by metre, above the ground.
5. Get your home dry flood-proof
This involves installing preventive features that help keep your house dry at all times. There are various steps that can be taken, but the most useful ones are sealants and barriers, which stop the excess water from seeping in, during floods. You should also seriously think about having a robust drainage system to help divert the water far away from your house.
6. Seek a grandfathered plan
If you live in a home that is presently deemed ‘low risk’ but later gradually turns into a ‘high-risk’ zone, know that it will spike the premium rates almost instantly. Even merely one flooding incident is enough to do this. So we suggest you ask your agent if he can grandfather you into your current premium, and also within your low-risk flood zone rating. By doing so your premiums won’t skyrocket with time, and even a flood arises, it remains the same.