Flood insurance
Nearly 80% of NJ residents live in flood-prone areas. Don’t wait until it’s too late to find out you are not properly protected.
Flooding is one of New Jersey’s most common natural hazards, with up to 80% of the state’s residents living in flood-prone areas. Also, floods are involved in up to 90% of all the natural disasters in America, and they will hit even moderate and low-risk areas. If you live in a flood-prone area, investing in flood insurance will likely be the only thing standing between you and complete financial ruin in case a flood strikes. Even if you don’t live in a low-risk zone, flooding is always a possibility. Since most homeowners’ and renters’ policies do not provide coverage for flooding, you will have to purchase a separate flood insurance policy.
Our benefits
Do I really need flood insurance if I’m in a low-risk FEMA zone?
Yes—up to 30% of claims come from areas flagged as “low to moderate risk” . Flooding can happen anywhere, so this coverage protects you when standard homeowners insurance won’t.
What factors influence my flood insurance cost?
Premiums are based on: flood zone, building age, elevation, structure type, and coverage amount . Low-risk homeowners can opt for a more affordable Preferred Risk Policy.
How long does it take to activate a flood policy?
With NFIP policies, there’s typically a 30-day waiting period before coverage starts—unless mandated by a government-backed lender . We help you plan ahead to avoid gaps.
What Is Flood Insurance?
This is a type of property insurance that offers your home protection against water damage from flooding. It covers flooding caused by:
- Coastal storm surges
- Prolonged or heavy rain
- Melting snow
- Levee dam failure
- Blocked storm drainage systems
This coverage is usually administered by the federal government via FEMA’s National Flood Insurance Program (NFIP), and it is available for all commercial and residential properties. Similar to your homeowners’ insurance policy, flood insurance will pay you the cash equivalent to the value of the damage caused by flooding and heavy rainfall. You will also have to purchase a separate coverage rider to provide coverage in case of sewer backup if rising floodwaters aren’t responsible for the backup.
Note: You will be required to purchase flooding insurance if you apply for a federally backed mortgage for a property located in a federally designated flood zone or an area with a relatively high risk of flooding due to prolonged rains, mudflows, or flash flooding.
The National Flood Insurance Program
Flood insurance is offered by the federal government via National Flood Insurance Program (NFIP). Managed by the Federal Emergency Management Agency (FEMA), the program offers flood insurance coverage to communities in NFIP-designated floodplains as well as those that opt-in. However, the actual insurance policies are issued by private insurance providers. FEMA and the National Flood Insurance Program work together to keep the maps of designated flood zones up to date, constantly updating them as weather patterns change and intensify.
These maps are divided into subsections based on the risk of flooding. For instance, communities in Zone A and V tend to be along the coast and are considered high risk, while zones B, C, and X are considered moderate to low risk (less than 1% of yearly flooding). Zone D indicates that an area is still undetermined, and the federal government is still working to classify the area. You can check which zone your home falls into by comparing the property address against the flood map service center at Floodsmart.gov.
How Much Does Flood Insurance Cost?
The amount of money you spend on a flood insurance policy will depend on a couple of factors. These include:
- Property age
- Number of floors
- Structure and location of your home
- Proximity to a water body
- Elevation
- Flood zone designation
- Type of coverage
Homeowners in low to moderate risk areas can purchase a Preferred Risk Policy. This is a relatively low-cost policy that provides coverage for buildings and their contents for a single price. On average, NFIP flood insurance coverage for residential properties maxes out at $250,000 for buildings, including the foundation, flooring, walls, blinds, built-in bookcases and cabinets, and detached garages, and $100,000 for contents, including the furnace, central air, water heaters, and other big appliances. For commercial properties, the coverage maxes out at $500,000 for buildings and $500,000 for the contents.
Find the Best Flood Insurance
If you live in the New Jersey coastal area and still haven’t insured your home against damage from flooding, prolonged rain, or mudflows, you need to do so ASAP. We will evaluate all the factors that could determine your insurance costs and leverage our connections with several local and national insurance carriers to find you the best policies at the best prices. Contact us today for a quote.