The National Flood Insurance program (NFIP) offers coverage through private insurance companies. You can cover your home for up to $250,000 and the contents for up to $100,000. Renters also can cover their belongings for as much as $100,000.
You can choose less coverage if you wish. Prices, which are standard from one insurer to another, depend on how much coverage you choose and on whether your home is in a high-risk area.
In a designated high-risk area, you’re required to have flood insurance if you want a home mortgage from a bank that belongs to the Federal Deposit Insurance Corp. (FDIC). The same requirement applies to mortgages from the Federal Housing Administration and the Veterans Administration.
Some lenders require borrowers in high-risk areas to buy coverage at least equal to the outstanding mortgage balance while others want flood insurance to match the home’s replacement value, up to the maximum allowed. For the maximum coverage of $250,000 of flood insurance on your home and $100,000 on the contents, the standard premium is $1,385 a year in a low-to-moderate-risk area. In a high-risk area that coverage would cost about twice as much: $2,766 a year.
