As a homeowner, it’s important to insure your home and its contents. Depending on your property location, your home is either considered at high-risk or at moderate-to-low risk for a flood. Your insurance premium will vary accordingly.

Moderate-to-Low Risk

Most homeowner’s in a moderate-to-low risk area are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price.

If you don’t qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn’t federally required, nearly 25% of all NFIP flood claims occur in moderate-to-low risk areas.

High-Risk

If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.

The Dwelling Form provides insurance for buildings with one to four units, including single-family condominium units and townhouses. The General Property Form provides insurance for other- residential and commercial buildings. Both forms provide optional contents coverage.

Calculated Risk

Flood insurance premiums are calculated based on factors such as:

• Year of building construction
• Building occupancy
• Number of floors
• The location of its contents
• Its flood risk (i.e. its flood zone)
• The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
• The deductible you choose and the amount of building and contents coverage

If your home is in a high-risk flood area and you have obtained a mortgage through a federally regulated or insured lender, you are required to purchase a flood insurance policy.

NFIP = National Flood Insurance Program