A flood insurance deductible is the amount you agree to pay out of pocket before your flood insurance policy begins to cover damages after a covered claim. For example, if you have a $2,000 deductible and experience $10,000 in covered flood damage, you would pay the first $2,000, and your policy would cover the remaining $8,000, up to your policy limits.
Flood insurance deductibles may apply separately to your home and its contents. This means you may have one deductible for structural damage and another for personal belongings.
How to Choose a Flood Insurance Deductible
Your agent may recommend considering the following when choosing your deductible:
- Premium costs: Higher deductibles usually mean lower monthly or annual premiums, while lower deductibles result in higher premiums.
- Risk tolerance: Consider how much you could pay out of pocket after a flood. A higher deductible can save you money on premiums, but it increases your financial responsibility after a loss.
- Flood zone: Homes in higher-risk flood zones may have different deductible options or requirements than those in lower-risk areas.
Deductible Choices
Some policies may have built-in deductibles. For example, minimum deductibles may apply if you purchase coverage through the National Flood Insurance Program (NFIP). Choosing higher deductibles triggers a built-in discount, but there are additional considerations that you should discuss with your broker.
Private flood insurance policies typically have several deductible choices with corresponding premium discounts when you choose higher deductibles.
Learn More
If you have questions about flood insurance deductibles or want to review your current policy, our team is here to help. Contact us today to discuss your Suffolk County flood insurance needs.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.