Lower Cost Options
The price of a flood insurance policy varies depending on a property's risk. In high flood risk areas, where coverage is often mandatory, policies cost more. However, most of the country falls within the moderate-to-low risk areas for flooding.
In moderate- to low-risk areas, residents and business owners of qualified buildings have a lower cost flood insurance option available in the form of the NFIP's Preferred Risk Policy (PRP). Even though flood insurance isn't federally required in these moderate- to low-risk areas, the risk of flooding is still very real. In fact, people outside of mapped high-risk flood areas file nearly 25 percent of all NFIP claims and receive one-third of all Federal Disaster Assistance for flooding. When it's available, disaster assistance is typically a loan you must repay with interest.
The PRP covers a buildings and its contents. But a contents-only version is available to renters and business owners who lease their buildings.
Policies cover up to $250,000 for buildings and $100,000 for contents.