Flood insurance is only mandatory for some homeowners. However, the coverage is useful for anyone whose property faces a flood risk. Flood insurance rates range from a few hundred to over a thousand dollars. Below are critical factors that determine how much you pay for flood insurance. 

Flood Zone Designation

The Federal Emergency Management Agency (FEMA) classifies different geographic areas according to their flood risk. The classification uses letters and numbers to represent different flood risks. Designations that start with A have higher risks of flooding than those that start with B.

Insurance companies use flood designations to estimate the risk of flood damage. Flood damages cost insurance companies money in the form of damage claims. Low-risk designation can help lower insurance costs.

Property Design and Material

Your house's design, construction, and materials determine its risk of flood damage. For example, a house whose first floor sits above the flood zone is less likely to experience flooding than those whose floors lie below the flood zone. Such raised floors lower insurance rates. Similarly, flood damage-resistant materials, such as concrete, lead to affordable premiums.

Property Age and Maintenance

Your house's structure and materials deteriorate over time: metal corrodes and wood rots. The deterioration increases flood damage risk. Thus, new homes attract lower rates than older properties. Proper maintenance mitigates some risks, so older homes that have had proper maintenance also attract affordable floor insurance.

Distance From Water Bodies

The flood damage risk is high for homes close to water bodies, such as rivers, lakes, and oceans. Even a small addition of water into large water bodies can cause them to rise and damage nearby infrastructure. The closer your house is to the water, the higher its risk of flood damage. If you want a waterfront property, get one a little bit distant from the water to enjoy affordable insurance.

Coverage and Carrier

Lastly, the insurance company and coverage also determine flood insurance rates. Like other lines of insurance, flood insurance companies use multiple factors to determine rates. Some factors affect your rates more than others. The companies differ on which factors they place more emphasis on.

Secondly, insurance companies offer various forms of coverage. For example, you can purchase dwelling coverage only or dwelling plus content coverage. The more comprehensive your coverage is, the higher its rates are.

Hopefully, you will find affordable flood insurance to protect your home. Contact a home insurance provider to help you shop for an insurance package.