Insurance Advisor at Oliver L.E. Soden Agency, Inc

Average Cost of Flood Insurance in 2017

Flood insurance does not come cheap these days, and it can make all the difference as to whether or not you purchase your dream property. Flood insurance policies through the National Flood Insurance Program (NFIP) cost an average of $672. The true cost of your policy will depend on a multitude of factors, such as how much coverage you need and how close your home is to the water.


Another factor that affects flood insurance rates is the state that you live in. Surprisingly, how prone a state is to flood damage is not always an indication of what you will pay for insurance. The most expensive states for flood insurance are Rhode Island, Vermont, Connecticut, Massachusetts and New York. States with the lowest flood insurance costs are Florida, Maryland, Arizona, Texas and Alabama.


Private Flood Insurance: An Option for NJ Residents


Private flood insurance has become more popular over the years. However, not every state has access to private flood insurers. The largest company at this time is The Flood Insurance Agency, and it provides flood insurance to 34 states. Rates don’t fluctuate much across state lines. Instead, premiums are based on how much coverage is needed and how far from the water’s edge you are.


In New Jersey, there are “V” zones, “A” zones and other zones that your home could be in. Let’s look at what these zones mean.


  • “V” Zones. Homes in the “V” zone are considered to be in a Special Flood Hazard Area. This is the most hazardous of the areas and usually includes beachfront properties. The average cost in NJ for “V”-zone homes is $13,713.


  • “A” Zones. “A” zone homes are the next most hazardous of the Special Flood Hazard Areas because they are subject to rising waters. These homes are typically located near rivers, lakes, streams or other bodies of water. Homes in “A” zones pay an average of $2,922 for flood insurance.


  • Other Zones. “X” zones are minimal-risk areas where flood insurance is not mandatory. “D” zones are areas that have not been researched, though flooding is possible. You can expect flood insurance for these properties to be around $400.


If you already live in a home that requires flood insurance, you’re probably familiar with the process. If you are considering a property near water, talk to your insurance agent about the cost to insure it. New Jersey residents have the option to go with private flood insurance, which could make that dream beachfront property all the more possible.