With Tsunami Risks in Mind, Californians Should Check Their Flood Coverage
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Flood Insurance: What Every Homeowner Needs to Know
This week, more than a quarter million California homeowners could see changes in their insurance under the federal flood insurance program. The average cost of National Flood Insurance Program policies and deductibles will increase, as will basic policy limits for most buildings and contents.
The cost of federal flood policies will rise an average 8 percent nationally. Deductibles will also change: Homeowners in high flood risk areas with $500 and $1,000 deductibles will see their deductibles double.
Policyholders with existing $2,000 deductibles can reduce them to $1,000 at an additional cost.
Because flood maps are also changing, some homeowners could see the cost of flood insurance decrease. To estimate the cost of a flood policy in your neighborhood, visit the NFIP online insurance calculator.
The NFIP is also making additional revisions to building eligibility requirements.
“With homeowners in coastal communities on alert for possible tsunamis caused by earthquakes in Samoa and Indonesia, they should be aware that damage from rising flood water is not covered under a standard homeowner insurance policy. This financial protection is only available with a flood insurance policy,” said Candysse Miller, executive director of the Insurance Information Network of California.
On average nationwide, flood policies cost $544 a year. However, many communities receive discounts for having taken measures to reduce their exposure to flood risks.
Currently, there are 271,007 NFIP policies in effect in California, with total premium of $188,415,733. Policy coverage limits for homeowner flood policies are typically $250,000 for the structure and $100,000
for contents. Commercial buildings can be covered up to $500,000, plus $500,000 for contents. Renters’ flood policies can be purchased for up to $100,000 in coverage.
The average claim nationally for a flood policy is $33,000.
Administered by the Federal Emergency Management Agency, the NFIP offers homeowners, renters and businesses flood coverage through 90 private insurance companies. Flood insurance may also be available outside of the NFIP partnership. For more information, homeowners should call their agents or brokers.
IINC is non-profit and non-lobbying trade association dedicated to helping the public understand insurance and manage risk. For more information, please visit the IINC Web site. You can also follow IINC on Twitter at
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ADDITIONAL RESOURCES National Flood Insurance ProgramOnline Insurance CalculatorFederal Emergency Management AgencyPrivate Insurance Companies
