Special Flood Hazard Areas
The Federal Emergency Management Agency (FEMA) has a Flood Insurance Rate Map (FIRM) that notes high-risk areas.
These areas have a 1% or higher risk of flooding in a year. Over 30 years, there’s a 26% chance of flooding. Due to the high probability of a flood over the course of a 30-year mortgage, it can make sense to obtain flood insurance.
You can check if your address is in one of these areas here.
Even if you’re not in a high-risk zone, it could be in your best interest to get flood insurance. Generally, homeowners insurance doesn’t cover floods.
Even in areas with only low-moderate risk, you’re still four times more likely to have a flood than a fire over 30 years.
What determines a flood insurance premium?
Flood Zone: New York City is divided into six different flood zones, which will give you a good estimate of where your property lies. The more at risk you are of flooding, the higher the base premium of the insurance will be.
Building Type: Different types of emails most likely have different base rates.
Elevation of Lowest Floor: The higher the elevation your lowest inhabited floor, the lower your premium may be. Inhabited floors are ones that aren’t entirely used for parking, storage, or access.
Amount of Insurance: The more insurance coverage you get, the higher your premium.
Deductible: A higher deductible can decrease your insurance premium.