The Cost of Flood Insurance VS The Cost of Being Uninsured

When considering the cost of flood insurance, first and foremost, you need to weigh its potential cost versus the potential cost of being uninsured. The discrepancy would be astronomical. Most American’s could not afford to rebuild their lives out of their own pockets if their home was destroyed by a flood. That is the purpose of flood insurance; to defer the cost of picking up the pieces after a devastating flood.

The cost of insurance varies from area to area. If you live in an area with a low risk for flooding, your insurance rates are going to be much lower than if you live in a high risk area plagued by hurricanes or flash flooding. According to many surveys, as of 2009, the cost of insurance premiums vary from less than $350 annually to upwards of $3000, depending on the predetermined flood risk in your area. While this cost may seem prohibitive to some, you need to take into consideration that you couldn’t possibly rebuild a destroyed home for anywhere near even the highest end of the flood insurance spectrum. (more…)