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.
A Preferred Risk Policy provides both building and contents coverage for properties in moderate- to low-risk areas for one low price. Even though flood insurance isn't federally required, anyone can be financially vulnerable to floods. In fact, people outside of mapped high-risk flood areas file more than 20 percent of all National Flood Insurance Program flood insurance claims and receive one-third of 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.