Flood Insurance prices

[bonnotsm9]

If you don't mind sharing, those of you who pay flood insurance, how much does yours cost per year.

We pay ~$1100/yr for ~$200,000 replacement cost for structure (no contents coverage).

We used to carry just the amount of the mortgage, but our mortgage holder made us carry replacement cost after the Iowa floods a few years ago.

[savvy_sniper]

I don't remember off the top of my head, but flood insurance (in Texas anyway) is state run. So it doesn't matter who you get it through the price for whatever coverage you choose is the same.

We are not in the flood zone so it is not required by our lender. In our area lots of places have flooded for the first time ever recently.

[bonnotsm9]

Thanks. I believe ours is federally sponsored, but we pay an insurance co. our premium- American Bankers co, I think. We've always thought our flood insurance was high, but wondered if maybe it's just average for what everybody else pays for it. It's more than our hazard insurance.

[Saule]

Flood insurance, earthquake insurance and hurricane or windstorm insurance are all high premium insurances, and it's not unusual that they can equal or exceed your hazards/homeowners policy premium.

These perils - causes of loss - are excluded from standard policies. The reason for this is that when these events hit, they can devastate an area, affecting every building in a certain area. Insurance is based on the idea that not every building will be affected by a loss. In the early days of insurance, for example, an insurer would not insure more than two buildings on a city block from fire - there were no building codes, no fire-resistant materials, and fire fighting services were spotty or rudimentary, so if a fire started, an entire block could and would go up. Financially that could bankrupt an insurer, and thus cause a hardship for all other policyholders. This was before guaranty funds, which provide some protection.

Anyway, the same is true of earthquake, floor and windstorm/hurricane events. Flood insurance is reinsured by the federal government, because of the need to keep the mortgage industry solvent - this means that private insurers collect premium and will adjust the loss, if one occurs, but the federal government will reimburse them once losses exceed a certain level.

[Neeley]

We are not in a flood area, not required to carry it. However, it runs us $350/year. Covers the home @ $150K, contents @$93K. (Through Geico who subs it out to another company)

Homeowners coverage is $1200/year with same coverage amounts plus an additional $12K for outside storage building and contents. (Through ALFA)

[bonnotsm9]

These perils - causes of loss - are excluded from standard policies. The reason for this is that when these events hit, they can devastate an area, affecting every building in a certain area. Insurance is based on the idea that not every building will be affected by a loss. In the early days of insurance, for example, an insurer would not insure more than two buildings on a city block from fire - there were no building codes, no fire-resistant materials, and fire fighting services were spotty or rudimentary, so if a fire started, an entire block could and would go up. Financially that could bankrupt an insurer, and thus cause a hardship for all other policyholders. This was before guaranty funds, which provide some protection.

Anyway, the same is true of earthquake, floor and windstorm/hurricane events. Flood insurance is reinsured by the federal government, because of the need to keep the mortgage industry solvent - this means that private insurers collect premium and will adjust the loss, if one occurs, but the federal government will reimburse them once losses exceed a certain level.

Maybe this explains why we were required to increase our coverage after the Iowa floods even though our area wasn't flooded. I've always wondered why our mortgage holder announced we had to carry increased coverage after that.

[bonnotsm9]

We are not in a flood area, not required to carry it. However, it runs us $350/year. Covers the home @ $150K, contents @$93K. (Through Geico who subs it out to another company)

Homeowners coverage is $1200/year with same coverage amounts plus an additional $12K for outside storage building and contents. (Through ALFA)

That's nearly as inexpensive as our earthquake insurance. We didn't carry flood insurance at our previous house because it was located on top of a high hill.

[mom21]

I live in SOuth Florida. I don't think I am in a flood zone but carry it anyway. BLDG $250K and Contents 100K runs me $505 a year. Whatever you do though don't get me started on my homeowners. ARGHHH. It is crazy high.