Coastal homes in Florida are at a higher risk for flooding, so homeowners typically purchase flood insurance. This is required by mortgage lenders for homes located in NFIP-defined high-risk areas.

Location still plays a major role in your premium, but a new rating system called Risk Rating 2.0 has started to change the game. Nevertheless, there are several strategies you can use to lower your flood insurance cost in Florida.

Shop Around

The NFIP has been around for decades, but private insurers have begun to offer competitive policies, which can make the cost of flood insurance much more affordable. As a result, homeowners can easily find policies to fit their budget and coverage needs.

The key factors that impact the cost of flood insurance in Florida include location and individual property risks, such as elevation, proximity to flooding sources, construction type and more.

Those in high-risk zones will typically pay more, but even those not in a flood zone should consider purchasing a policy, especially since mortgage lenders require it as a condition of their mortgage.

As with any home or auto insurance policy, clients can lower their flood insurance cost in Florida by shopping around and comparing deductibles, coverage limits and premium rates between companies. They can also look at the different types of insurance available, such as loss control services and water backup protection, to see if they can find a better deal on these additional add-ons. This may help them save even more in the long run.

Review Your Coverage

Homeowners can lower their flood insurance rates by reviewing the policy’s coverage limits and looking for other ways to reduce risk. For instance, homeowners can get an elevation certificate from their local government to see how close their home is to the base flood level, which impacts the rate they will pay.

It is also important for homeowners to consider whether their home and possessions are worth the amount they are paying in premiums. An insurance agent can help them decide how much coverage they need, while a home inventory is a good way to determine the value of their possessions.

Homeowners need to know that their traditional homeowners’ insurance will not cover damage caused by floods. Therefore, a separate policy must be purchased to protect your investments. Also, looking around for a financially stable insurance provider with a good reputation is helpful. Private insurers can provide more options than NFIP. They may offer higher limits for contents or a shorter wait period before a policy takes effect.

Reduce Your Deductible

You will pay the deductible before your insurer begins to pay for a claim. The higher your deductible is, the cheaper your insurance premium. You will need enough money to deliver the deductible if you ever need to claim flood insurance.

Your home type, building, and contents coverage will also influence your rate. You should ensure sufficient coverage to rebuild your house and replace your belongings in a flood. A professional insurance agent can assist you in determining how much coverage is needed.

You can also save money on your flood insurance by reducing your deductible. NFIP policies come with a standard deductible of $1,000, but private insurers may offer lower deductibles. You can also save money by providing an elevation certificate to your insurer, which shows that your house’s first floor is higher than FEMA’s minimum level. This can reduce your premium because your property’s risk of flooding is lower.

Change Your Coverage Amount

Many homeowners in Florida need the proper home insurance to protect their property from damage caused by flooding. While homeowners’ policies may include some flood coverage, getting separate NFIP flood insurance is important — especially as one inch of water can cause $25,000 worth of damage to homes.

As you shop around for home insurance, ask about the cost of NFIP flood insurance and how to lower it. You can save by changing your coverage amount or raising your deductible. Generally, the higher your deductible, the lower your premium since you cover more out-of-pocket costs in case of a claim.

The elevation of your property can also influence the cost of your NFIP flood insurance. You can check with your local floodplain manager or have a professional land surveyor complete an elevation certificate for your home. This could help you qualify for mitigation discounts. Both NFIP and private insurers offer these discounts. They can reduce your NFIP policy by up to 18% a year.

Review Your Policy

Reviewing your insurance policy may need to be higher on your to-do list, but saving you money in the long run is an important step. Homeowners and renters need to do a thorough policy review after major life changes or natural disasters.

Flood insurance is an important investment for anyone who lives in Florida. While hurricanes are the most common cause of flooding in the state, even less severe tropical storms can cause damage to homes and property.

Most insurance policies cover building and contents, but coverage differences depend on your policy type. For example, NFIP policies generally only offer building coverage. Private insurers often offer a broader range, including content and additional living expenses.

When purchasing a policy, consider your home’s location and individual risks. For example, properties in AE or VE flood zones are typically more expensive than those in Zone D. Homes near coastlines and rivers are at a higher risk of flooding. Even though mortgage lenders don’t require it, those in high-risk areas are still strongly encouraged to obtain a flood policy.