Three Tips for Reducing Your Flood Insurance Premiums

Three Tips for Reducing Your Flood Insurance Premiums

Since Hurricane Sandy, homeowners have seen a substantial rise in premiums for flood insurance in NJ. Here are three steps you can take to lower your flood insurance premiums without reducing coverage.

  1. Fill in the Crawl Space – Below-grade crawl spaces and basements create considerable risk and can increase your insurance premiums by 15–20 percent. Filling the crawl space with dirt or gravel to level it with the surrounding grade mitigates the possibility of flood damage and can lower your premium.
  2. Raise Equipment – Equipment installed at or below ground level is at high risk for flood damage. This threat can be reduced by relocating equipment such as:
    • Air conditioning unit
    • Furnace
    • Water heater
    • Electrical panel

    Installing equipment on a main floor instead of the basement, or on an above-grade platform, decreases exposure to flood waters and can drive down the price you pay for flood insurance in NJ.

  3. Add Flood Openings – Flood openings are ground-level vents that allow water to pass through, minimizing damage from hydrostatic pressure. Installing properly sized flood openings can yield significant premium cost savings.

Good flood coverage should protect your home and its contents, but the minimum required flood insurance in NJ may be insufficient. An insurance company specializing in flood protection can help you find the right coverage for your home and your wallet.

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