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Flood insurance costs rise

World Insurance Report

Flood insurance costs rise

The cost of federal flood policies in the US will rise by an average of 8% nationally as part of changes to the National Flood Insurance Programme. Deductibles will also change: homeowners in high flood risk areas with $500 and $1,000 deductibles will see their deductibles double. Policyholders with existing $2,000 deductibles can reduce them to $1,000 at an additional cost. On average nationwide, flood policies cost $544 a year. The Insurance Information Network of California warned local policyholders to check their flood insurance coverage. “With homeowners in coastal communities on alert for possible tsunamis caused by earthquakes in Samoa and Indonesia, they should be aware that damage from rising flood water is not covered under a standard homeowner insurance policy. This financial protection is only available with a flood insurance policy,” said Candysse Miller, executive director of the IINC. There are an estimated 271,000 NFIP policies in effect in California. The average claim nationally for a flood policy is $33,000.

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