I don’t know about you, but my home is the most important investment that I have. Not only is it monetarily significant, but my home is the place where we “hang our heads”. It’s the center of our world, and quite frankly we just don’t want to be homeless. This is why home insurance is so important. Part of my home insurance plan includes flood insurance, and I hope yours does too.
A question that I have been asked quite often is how often should we get flood insurance quotes. Just as with all types of insurance for our homes, we should get quotes on a regular basis. Here’s why:
- The rates can vary from company to company. How much can they vary? A lot! I have personally seen a 50% difference between one flood insurance company and another, even though they both had exactly the same deductibles, policy limits and coverage. It’s incredible! Some companies are aggressive with their pricing, while others simply try to get away with charging as much as they can.
- The rates can vary from one year to another. I was speaking with a couple about this issue a few years ago. Let’s say that they had flood coverage for $50 a month. They checked with all of the companies that were offering flood in their area. They were all right around that $50 a month. A year after they bought their policy they reached out for quotes from the same companies that they had previously spoken with. Three of these companies quoted them a new price below $40 a month. You see, the same exact companies lowered their price after just one year.
- Why pay more for something? This is what it comes down to. As long as we are dealing with reputable insurance companies, why would you want to pay more for flood coverage? This is the reason that we shop around. I’m pretty sure that any lady reading this can appreciate this point. You don’t just walk into one store and pay whatever they want for a purse. You shop around!
When you decide to shop around for your home flood protection, I highly recommend that you contact at least five companies that are offering it in your area. Make sure that you are getting quotes on the same type of coverage (deductibles, policy limits, etc.) from each of them. You should (hopefully) be able to find five companies in your area by doing a Google search for them.
Back to our original question: how often should I get flood insurance quotes? I highly recommend that you shop for better deals once a year. You may be really surprised by how much you may potentially save!