Flood Barrier USA

How to Save Money on Flood Insurance

Author: Donna Conneely

Flood risks in any given area can change over the years. Homes and businesses that historically have not required flood insurance can suddenly be designated as being inside a flood-prone zone. The property owners then have to scramble to find flood coverage on their insurance policies, which can come as quite a financial shock.

This year, thousands of properties have been added to the list of homes and businesses that require flood insurance. Many property owners are struggling with this new requirement, and are wondering where the money will come from to pay the premiums.

Flood insurance is usually purchased through the National Flood Insurance Program (NFIP), a federally funded program. This program makes available insurance to many homes and businesses that would otherwise be uninsurable. But the premiums are not cheap, and in tough economic times the sudden added expense may be untenable.

Luckily, there are ways to reduce flood insurance premiums, although these measures may also come with a substantial price tag. In the long run, however, reducing the cost of insurance premiums will more than make up for the initial outlay for flood risk reduction infrastructure. After the recent super-storms that destroyed so much of the eastern seaboard, many businesses are now installing flood panels and other mitigation measures to prevent a recurrence of the nightmare clean-ups of late 2012.

When planning flood protection for a property, the single most important consideration is to build in a location that has natural flood protection characteristics. These characteristics may include elevation, natural berms and well-established run-offs. However, in the case of a property that is already built, remedial measures may be needed.

Remedial measures generally involve flood barriers of some kind. It may be that an earthen berm can be put into place to direct water to a causeway. Or flood panels may be installed that will pop into place at the crucial moment to protect the building.

Another way to save money on flood insurance is called “grandfathering”. FEMA recommends that any homes and businesses that are newly being added to a flood zone should immediately buy flood insurance, before being required to do so. In this case, the property will be “grandfathered in” at the old rate, instead of coming in with much higher premiums. It is vitally important to ensure that there are no lapses in the policy, or the new, higher rates will take effect.

Although it may seem onerous to be required to pay for flood insurance, especially if one has never before suffered that expense, this requirement is necessary to protect the larger society from disastrous expense in the event of a severe flooding event. It also encourages property owners in flood-prone areas to mitigate risks and to create a safer community for all.

This entry was posted on Monday, March 18th, 2013 at 9:07 pm and is filed under Flood Protection. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.