If you are a renter, it is wise to insure your contents. The policy premium is based on several factors, including the flood risk of the building that you occupy.
Most renters in moderate-to-low risk areas 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. In fact, residential premiums in moderate- to low-risk areas start as low as $57 per year for Contents Only coverage.** As of Oct 1,2013
*$57 annual premium provides $8,000 in contents coverage.
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, anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding. When it’s available, disaster assistance is typically a loan you must repay with interest.
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.
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 coverage