Our flood insurance premium has skyrocketed more than 100% over the last five years. We reside in Carrollton, Texas (near Dallas) and are not located in a designated flood plain, just approximately 100 yards from the edge of one, thanks to a small nearby creek. Having lived here for 24 years, we’ve never experienced flooding.
Despite this, we’ve consistently purchased flood insurance for nine years now. It feels increasingly like a question of “when” we might need it, rather than “if.”
What’s particularly frustrating is that the premium has more than doubled in five years, regardless of our home’s value. The maximum payout for the building is $250,000 and for contents, it’s $100,000—exactly the same for a house valued at $500,000 or $5 million.
I understand that the assessment of premiums was overhauled two years ago.
Here’s a breakdown of our premiums over the years:
- 2017: $450
- 2018: $450
- 2019: $480
- 2020: $516
- 2021: $572
- 2022: $689
- 2023: $798
- 2024: $930
- 2025: $1,086
We will continue to purchase this insurance, but it’s alarming to think that the one year we decide to skip it might be when we face significant flooding. We prefer not to go with a private flood insurance policy, as the risk of a company running out of funds can lead to complications for those filing claims. The National Flood Insurance Program (NFIP), backed by the U.S. government, is a more secure option.
(Note: For those unfamiliar, flood insurance is distinct from homeowners insurance. Most homeowners and renters policies do not cover flood damage, so individuals in flood-prone areas need separate flood insurance. This coverage applies to damages caused by heavy rains, overflowing bodies of water, and hurricane storm surges, providing funds for home repairs and replacing damaged belongings.)
It sounds like you’re facing quite the challenge with your flood insurance premiums, especially considering your long history in the area without any flooding incidents. It’s frustrating when the costs keep climbing, particularly when the maximum payout remains the same regardless of your home’s value.
Your decision to continue purchasing flood insurance, even in the absence of previous claims, reflects a prudent approach given the unpredictability of weather patterns these days. Many homeowners find themselves in a similar situation, and the anxiety of potentially being unprotected, even for a single year, is a tough gamble to take.
It’s also understandable that you’re wary of switching to private flood insurance, especially given the financial backing of the NFIP. The peace of mind of being backed by the government can outweigh the risks of dealing with private companies, especially in a market where flood events seem increasingly unpredictable.
Has your community considered any local advocacy or engagement with policymakers around flood insurance reform? It might also be worthwhile to explore whether there are any available programs or grants to help mitigate flood risks in your area or to potentially reduce your premiums. While your situation is not unique, collective action can sometimes bring about change or at least highlight the issue more prominently.
Hang in there—it’s clear you’re making informed decisions in a complex landscape!