NFIP Flood Insurance

5 Replies

Anyone have a recommended source for Flood Insurance for a SFH?

Getting quotes for one of my Indianapolis properties in the $3k+ range, which is outrageous. I could insure it myself at that rate.

Todd,

There are several non-NFIP (National Flood Insurance program from FEMA) flood insurance providers out there now. Check with your mortgage co. to see if they will accept the Non-NFIP policy. Some banks will not accept the Non-NFIP policies.

Also, find out if the property is grandfathered in for any lower rates in NFIP.  If you get at Non-NFIP policy and then have to go back to NFIP you probably would lose the grandfathered rate. 

I'm not sure if Indiana offers a non-NFIP insurance option or not but if they are like Ohio than NFIP is your only option... however not all agents understand how NFIP works or how to give you coverage options.

If your main goal is checking the box for flood insurance at the lowest possible cost I would suggest asking the bank what is the least amount of coverage  and what is the maximum deductible they will accept - then get an agent to quote it that way.

I'm NOT saying this is a good idea to insure your property this way - you really need to investigate the risk and talk with your agent on what your level of risk tolerance is.

Many agents will try and quote it at the full reconstruction cost amount like it's an owner occupied property. If you are willing to take on some of the risk of lower coverage and the bank will play ball than this may be your  best way to save.

What I know about flood insurance is everyone hates being made to buy it and it's always more expensive than they expected. 

Good luck!