Same rates for a given property
“Homeowner’s insurance doesn’t cover flooding because in flood-prone areas, no one would be able to afford flood insurance,” due to the high rate of claims, explained Elizabeth Higgins of Ashokan Watershed Stream Management Program and Cornell Cooperative Extension.
Flood insurance is subsidized by FEMA through the National Flood Insurance Program (NFIP), making premiums affordable. The program is administered through the infrastructure of private insurance companies, which hire insurance adjusters to inspect properties and handle claims, but the federal agency contributes to payment of claims. Rates are set by NFIP, according to a property’s level of risk and its location. “All the different insurance agents should give the same rate for a given property,” noted Higgins.
She offered suggestions for homeowners concerned about insuring their properties against future flooding:
Get flood insurance, since homeowner’s insurance does not cover flood damage. If your house is in a low-risk area, your premiums will be lower. Even renters can obtain flood insurance to cover their possessions.
Consider making changes to your home to reduce the risk of flood damage, such as buying a furnace that hangs from the ceiling or a water heater that sits on the ground floor. Raising the entire house and adding to the foundation is another possibility. Although insurance will not pay for such modifications, they can lower your premium. An exception is if you’re in a 100-year floodplain and you have made claims of over 50 percent of the value of your home; in such a case, insurance will pay up to $30,000 to bring your home up to code.
If you make such changes, consult your town’s code enforcement officer to determine how high you would have to raise the house or the utilities to be above the 100-year flood level. Work with your insurance adjuster to make sure what you’re thinking of doing will be cost-effective.
Keep in mind that alterations, while expensive, may affect the resale value of your home. “I predict that in a few years, people will announce their flood insurance premium as a selling point,” says Higgins.
If you’re a second homeowner, definitely get flood insurance because FEMA disaster payments don’t cover second homes.
If you have other buildings on your property, such as a barn or cottage, you will need separate insurance to cover them.
See https://www.floodsmart.gov for information on flood insurance, including coverage, rates, and what your home may be eligible for.++
