How to Keep Your Flood Insurance Cost as Low as Possible

Flood insurance can be a crucial investment for homeowners and business owners living in areas prone to flooding. While the National Flood Insurance Program (NFIP) provides coverage, the cost of flood insurance can be significant, and it's always good to look for ways to lower the premiums. Fortunately, there are several ways to lower your flood insurance cost, and one of the most effective strategies is to lower your flood risk.

Mitigating your flood risk can protect your property from flood damage and help reduce your insurance premiums. Some common flood mitigation options include elevating utilities, installing flood openings, filling in basements, elevating your property, or relocating your home or business. If you're not sure where to start, check out the Homeowner's Guide to Retrofitting, which provides detailed guidance on how to reduce your flood risk.

Choosing a higher deductible can also help lower your flood insurance premiums. By choosing a higher deductible, you agree to pay more out of pocket if you file a claim, but your insurance premiums will be lower. You can choose different deductibles for building and contents coverage, and the deductibles will apply separately to building and contents claims.

It's important to check with your insurance agent to determine the right deductible coverage amounts for your specific situation. Increasing the deductible on your flood insurance policy to the $10,000 maximum could reduce your annual premium by up to 40 percent, but it may not be appropriate for everyone.

Providing an Elevation Certificate (EC) can also help lower your flood insurance premiums. While ECs will no longer be required to purchase coverage under Risk Rating 2.0: Equity in Action, you may choose to provide an EC to your agent to determine if it will lower your cost of insurance. ECs will also continue to be used for floodplain management building requirements, which can affect eligibility for Community Rating System discounts.

Your community's efforts to reduce the risk of flooding can also help lower your flood insurance premiums. If your community is enrolled in the Community Rating System (CRS), you may receive a discount on your flood insurance premiums. The discount is calculated based on the community's efforts to reduce the risk of flooding. To find out if your community is enrolled in the CRS, call your insurance agent or company. You can also encourage your community officials to take part in the CRS.

Mitigating your flood risk can not only protect your property but also lower your flood insurance premiums. Some effective strategies include choosing a higher deductible, providing an Elevation Certificate, and taking advantage of Community Rating System discounts. Be sure to consult with your insurance agent to determine the best options for your specific situation. With the right strategies in place, you can reduce your flood insurance costs while protecting your property from potential flood damage.

For more information on flood, please visit doi.sc.gov/flood.