What is the National Flood Insurance Program?
The National Flood Insurance Program (NFIP) is administered through the Federal Emergency Management Agency (FEMA). The NFIP enables property owners in participating communities to purchase flood insurance from the national government. For several decades, the NFIP was the only option for flood insurance. Until recently, their pricing structure was confusing and complicated, overcharging half of its policyholders, while undercharging the other half.
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However, in April 2022, FEMA introduced Risk Rating 2.0, a new pricing methodology aimed at trying to solve the inconsistency in pricing and analyze each individual property's true risk. While flood zones are no longer used for rating, they are still used to determine whether or not flood insurance is mandatory.
What is Private Flood Insurance?
Private Flood Insurance is coverage that insures property against the peril of flood. It is funded and written by private insurance companies instead of the NFIP. Private flood insurance typically offers higher limits and a wider array of coverage options than a comparable NFIP policy. Our online quote tool will show you the rates for both an NFIP and private flood policy! We offer both, so you can rest assured you're getting great coverage at a great price.
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Which is cheaper, NFIP or Private Flood Insurance?
This depends on your property's unique risk, which includes things like distance to water, your foundation type and the elevation of your structure. Remember to pay attention to differences in deductibles, coverages and limits when comparing quotes. Our online quote tool makes this easy, showing you rates and coverage options for your property through the NFIP and private flood insurers. We are here to provide you all the information you need to make an informed decision about protecting your home.
Let's compare prices...
This example shows how drastically prices can vary. The example below is for a single family home in Arizona with a $250,000 limit of coverage.
FEMA's NFIP Policy: $710/yr
Actual screenshot of quote below.
Private Policy: $315/yr
Actual screenshot of quote below.
Things to keep in mind when you're trying to save money on flood insurance...
Let's Compare: | Private Residential Policy | NFIP Residential Policy |
|---|---|---|
Compliant with State Insurance Laws | Yes | No |
Maximum Building Coverage Amount | $5,000,000 | $250,000 |
Maximum Contents Coverage Amount | $500,000 | $100,000 |
Additional Coverage Options Available** | Additional Living Expenses & Carports | None |
Basement Contents Coverage Available* | Yes | No |
Waiting Period for Policy Inception (Waiting periods waived for loan closing) | 7-15 Days | 30 Days |
*See policy for details.
**Limited coverage may be available for detached garage.
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Learn More about Additional Living Expense and Loss of Use Coverage
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Which to choose, Private Flood Insurance or NFIP?
FloodPrice offers both!
Private vs NFIP: Everyone's situation is different, which is why we show you both options in our online quote. Not all flood insurance companies offer rates online, making it hard to compare rates,.
Avoid the time consuming to wait around for an emailed price. Our online quote will show you coverage comparisons, as well as your price, so you can compare and choose the policy that's right for you and your unique situation.
Private Flood Insurance Carriers: We quote only the top-rated private flood insurance carriers, each holding an AM Best rating of A or A- (Excellent). These insurers offer flexible coverage options, fast processing, and competitive pricing, making them a strong choice of many property owners. Our priority is to connect you with reliable coverage that fits your needs and budget.
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Use our quick quote tool to compare private flood insurance and the NFIP side-by-side.
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NFIP Flood Insurance: The NFIP has undergone important updates in the recent years, and some homeowners may now qualify for significantly reduced premiums. Depending on your home's features, an NFIP policy may provide enough coverage for what you need.
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Can't Decide? Call Our Flood Experts
So What Are You Waiting For?
If you're still unsure which flood insurance is best for you, or just want to speak to a real live person, give us a call at 866-503-5663. We're happy to answer any questions you might have about Flood Insurance.
