Who much flood insurance is necessary? Currently not in a flood plain, but have coverage. After the recent floods in Houston, I actually think I'm over insured for flood damage. Any good estimates on $/SF or others to determin how much I need? I hate to pay money for I don't need. Currently covered at full value of 2 story house so that seems over the top as I do not see a flood destryoing the house. Now a hurricane might, but that is covered elsewhere.

I don't think you really get to choose, do you? For comparison my home is 3800 sqft and homeowners is $1700 and I think flood insurance is additional $400. Flood Insurance is all through FEMA.

Yep, set rate through FEMA.

Pretty sure you get to choose. You can't shop for rates as the rate is set but you can choose coverage.

We have a two story townhouse not in a flood plain. Since the house is two stories, we don't have coverage for the whole home value or valuables.

If you are not in the flood zone or what is considered zone X, you have several coverage options that range from 20k for like $180 per year up to 250k for roughly $430 per year. Rates are set, but amount of coverage can be chosen.

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If you are not in the flood zone or what is considered zone X, you have several coverage options that range from 20k for like $180 per year up to 250k for roughly $430 per year

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Sounds like an IQ test

I have the up to $250k coverage, and I think it went up to about $430 from $415 this year. I have never been given the option for less coverage.

$430 for 250k building and 100k for contents. pretty standard

Just got my $430 renewal notice yesterday

Get $75K policy.

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I have the up to $250k coverage, and I think it went up to about $430 from $415 this year. I have never been given the option for less coverage.

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Yep, exact same change for me.

My property was finally rezoned from AE to X.

You should purchase flood insurance based on the replacement (rebuild) cost of your home. If you purchase less than that, there is a co-insurance clause in the flood policy and that will reduce any claim payment based on the proportion of coverage to replacement cost. In other words, don't over think this. If you have a $205k home, purchase the $200k dwelling coverage option, not the $75k option.

Can someone who is actually really familiar with these policies please post? I've had the same policy for three years...covers UP TO $250k for about $430/year. I have never been offered any other option. My parents live in MS and have basically the same plan. Note - these policies are for homes in areas that mortgage companies DO NOT require flood insurance (zone X).

Other posters are indicating that you can choose your coverage level. Is this for policies in areas where the mortgage companies DO require insurance (like zone AE)? Because I've never been given that option, and in all the paperwork I've received from FEMA, there is no discussion of any other options. I always thought the policy for zone X was fixed coverage for a fixed premium. It just seems like the posts in this thread are contradictory/confusing.

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Can someone who is actually really familiar with these policies please post? I've had the same policy for three years...covers UP TO $250k for about $430/year. I have never been offered any other option. My parents live in MS and have basically the same plan. Note - these policies are for homes in areas that mortgage companies DO NOT require flood insurance (zone X).

Other posters are indicating that you can choose your coverage level. Is this for policies in areas where the mortgage companies DO require insurance (like zone AE)? Because I've never been given that option, and in all the paperwork I've received from FEMA, there is no discussion of any other options. I always thought the policy for zone X was fixed coverage for a fixed premium. It just seems like the posts in this thread are contradictory/confusing.

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Good questions. Basically if you have a 500k home in zone x what do you do?

Elevate it so it won't flood.

I've never been given the option either. My guess is because the limit is relatively low compared to replacement value in out area so it would be counter-intuitive to buy a lower policy. Especially if the price breakdown above is accurate, where you're paying near half as much to get less than 10% of the coverage.

Your assumptions are the same I've always had. Never been given any other options.

My home, which was re-zoned after Allison by TSARP into the 100 year floodplain, took no water during Allison. I was forced to buy a flood policy, but whether it is the $250K max policy, or merely the amount of the mortgage balance is up to the lender.

I posted this on another thread on the real estate board

The flood insurance adjusters are going to adhere the coinsurance penalty rules. In short, you need to insure your home, whether primary policy or flood policy to at least 80% (in most cases) of true replacement value to not incur additional penalties/deductions taken out of the total claim. You can't just "name" the amount you want to insure your home for and still be covered they way you would think.

If you want more info, let me know and I'll search here for a fairly good explanation of coinsurance penalty posted a few months back.

Fyi, standard flood insurance for a home caps at $250,000 so homes valued more that 250k will need an excess flood policy to be fully insured for flood. It is a separate policy that can usually be purchased from the same agent you bought the primary flood policy from. Commercial buildings cap at $500k on the standard policy, by the way.

https://www.fema.gov/national-flood-insurance-program/definitions

Coinsurance--A penalty imposed on the loss payment unless the amount of insurance carried on the damaged building is at least 80% of its replacement cost or the maximum amount of insurance available for that building under the NFIP, whichever is less. Coinsurance applies only to building coverage under the Residential Condominium Building Association Policy (RCBAP).


This reads to me that it does not apply to single family detached homes.

Good grief.

I just received my flood insurance renewal and have had $250/$100 since 2006.

My rate increased 58% over last year and has gone up 109% since 2012!

I'm at about I-10 and Campbell so it's not like I'm in a coastal community or anything. Preferred Risk category.

WTF?

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Good grief.

I just received my flood insurance renewal and have had $250/$100 since 2006.

My rate increased 58% over last year and has gone up 109% since 2012!

I'm at about I-10 and Campbell so it's not like I'm in a coastal community or anything. Preferred Risk category.

WTF?

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Feds decided to stop subsidizing flood insurance. So your rate going up is supposed to reflect your actual risk of flooding. Preferred Risk is good. Yes it's going up by a huge %, but the actual dollar value increase shouldn't be that great. Some people in the floodplain are having their insurance costs go up by thousands of dollars.

I called my insurance company today and come to find out the government had my house classified as a second home and that was driving the rate up. I competed a form and with a copy of my drivers license they'll get it back to where it was. Crisis averted.