How To Reduce Premiums On Your Flood Insurance Cover
Flood risk, location of the property, and the age and design of your property are among the primary factors that go into determining your flood insurance premiums. Fortunately, there is quite a bit you can do to ensure you pay a little less. Read on to find out.
Lower Your Property's Flood Risk
There are several ways you can mitigate your property's flood risk. First, elevating your home will significantly reduce your flood risk, and by extension, your flood risk insurance premiums. Secondly, and as an alternative to elevating your entire structure, you can choose to elevate the utilities on your property, from electrical panels to furnaces and boilers.
Another option is to install flood vents or openings. These openings reduce structural damage from flooding and prevent collapse by allowing the water to easily pass through, equalizing pressure. Lastly, fill in your basement. While a costly undertaking, filling your basement with concrete will not only reduce your flood risk but will also give your property a stronger base.
Provide an Elevation Certificate (EC)
The elevation of your building, as documented in an elevation certificate, is crucial for insurance ratings. Flood insurance companies do not require you to present this certificate to purchase a cover. It can, however, be beneficial in informing the decision to lower your insurance premiums, although this is solely at the discretion of your insurer.
Go for a Higher Deductible
One of the most crucial decisions to make regarding your flood insurance coverage is the deductible amount to choose. Going for a higher deductible will see you pay lower premiums. If you select the maximum deductible amount allowed for your policy, you may be able to reduce how much you pay on your premiums by a certain percent.
Talk to your flood insurance company agent about deductible amounts you can choose and the maximum you can select. You also need to fully understand the implications of this option, particularly that you will have to pay more, out-of-pocket, to cover the cost of rebuilding. Again, work to understand if going for the maximum deductible amount is the best option, as it may not be for everyone.
Pay less for flood insurance premiums by reducing your property's flood risk as outlined. You may also be able to achieve the same by providing your insurer with an elevation certificate. Similarly, you can reduce your premiums by going for a higher deductible amount. To learn more, contact a company like Binyon Agency.