There is a very big range of cost for flood insurance – roughly from $400 for a preferred Risk Policy to over $10,000 for a non-primary residence built in a high-risk zone significantly lower than Base Flood Elevation (BFE).
There are many factors involved in the rating, but it is mostly the difference between your first finished floor elevation and the BFE of your location. If your first finished floor is significantly higher than the base flood elevation, the cost will be lower.
Other key factors that will be key in the rating of flood insurance are:
- Primary vs non-primary residence
- Age of home
- Number of floors
- Type of foundation
- Proper flood venting in crawl space
The best answer is “sometimes.”
To get a better idea, it is important to understand a bit about Flood Insurance. Every community that participates in the National Flood Insurance Program (NFIP) has a Flood Insurance Rate Map. This rate map is what identifies how likely it is that your home will experience flooding. Homes built before this map was created for their community are referred to as “Pre-FIRM” and houses built afterward are referred to as “Post-FIRM.”
If your home is of “Post-FIRM” construction, meaning that is was built after the “FIRM Date” of your municipality, then the answer is almost always “Yes”. The FIRM dates range from 1974 to 1983 in Ocean County, NJ where our office is located. You can find your community’s FIRM date by clicking HERE.
However, it usually helps to have an elevation certificate regardless of your construction date. Elevation surveys cost approximately $600, but this is a worthwhile investment in many cases, as it can save you hundreds to thousands of dollars every year in flood insurance premiums.
FIRM = Flood Insurance Rate Map.
NFIP = National Flood Insurance Program
Pre-FIRM = House was built before the FIRM was established in its community.
Post-FIRM = House was built after the FIRM was established in its community.
FIRM Date = The date that the FIRM was created for a community.