Some Things to Know About Your MA Flood Insurance Rate:
If you own a home on the North Shore of Massachusetts (Peabody, Danvers, Beverly, Salem, Marblehead, etc.) your lender may require you to have a flood insurance policy. If you’re in a higher risk zone, chances are–you have a high premium. While high-risk policies come at a cost, low risk policies are relatively inexpensive. If you are not required, it is still a worthwhile policy to have.
Standard homeowner’s insurance doesn’t cover flood damage to your home or personal contents. Homeowners in areas such as downtown Peabody, which are historically prone to flooding, should have a flood policy. In contrast to the high-risk policies, low risk or elective flood insurance is rather inexpensive at about $500 per year. If you do have a high-risk policy, read below on how to save money on your flood insurance policy in Massachusetts.
Sometimes, although your zone is considered a risk, your home itself may not be. Are you on a higher elevation not prone to flooding? If that’s the case, you may want to invest in an elevation certificate. Costing anywhere between $500-$1500, not only can they justify a lower rate for you, but they can help you avoid costly renovation and construction mistakes. Sometimes, a few feet or even inches will make a huge difference on your flood insurance policy in the case of a loss.
Your deductible can come in handy as well. The higher the deductible, the lower the rate. It is important however, to discuss with your agent as a higher deductible isn’t always right for your policy.
Remapping or Renovating
Every few years, FEMA will re-map the areas and reassess the risk. This can either help you or hurt you, depending on your home’s elevation in proximity to the base flood elevation. Most agencies recommend making changes to your home’s elevation and keeping it at least 3 feet above the base flood elevation. They suggest filling in your basement, creating a crawl space, and adding vents. While these are major changes to your home, a elevation certificate will point you in the right direction for any major changes that can keep your home safe and your insurance rate lower.
Bundle Your Other Policies Together
Carriers will give “account credits” when you have your policies with one agency. Flood insurance is a little different, as it is a national program, but the carriers will still reward you with an account credit for keeping all of your policies under one roof.
Don't miss out on the savings! Quote and bundle all of your policies together if you haven't already.
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