Our flood insurance premium has skyrocketed over the past five years, more than doubling in cost. We reside in Carrollton (Dallas), Texas, just a stone’s throw away—about 100 yards—from a flood-designated area due to a small nearby creek. Despite living here for 24 years without experiencing any flooding, we’ve opted to purchase flood insurance for the past nine years. At this point, it feels like a matter of when, not if, we’ll need it.
What’s particularly frustrating is that the flood insurance premium increases don’t account for the value of our home. The maximum payout for the building is capped at $250,000, and for contents, it’s $100,000, regardless of whether our home is worth $500,000 or $5 million.
I understand there was a reassessment of premiums two years ago, but the price increases have been staggering:
- 2017: $450
- 2018: $450
- 2019: $480
- 2020: $516
- 2021: $572
- 2022: $689
- 2023: $798
- 2024: $930
- 2025: $1,086
We will continue to purchase flood insurance, but it’s a daunting prospect. The one year we decide not to renew might just be the year we’re hit by significant flooding! We prefer not to rely on a private flood insurance policy, as there’s a risk of the company going bankrupt and leaving claimants in a bind. That’s why we stick with the National Flood Insurance Program (NFIP), which is backed by the federal government.
For those unfamiliar, it’s important to note that flood insurance is distinct from homeowners insurance. Most standard homeowners and renters policies exclude flood damage, making separate flood insurance essential for those in at-risk areas. It covers damages from heavy rainfall, overflowing bodies of water, and hurricane storm surges, addressing both structural repairs and the replacement of damaged personal belongings.
It sounds incredibly frustrating to see your flood insurance premiums increase so dramatically, especially when you’ve never experienced flooding in all your years of living in Carrollton. The doubling of premiums can be a heavy financial burden, especially when you consider the limitations on payouts regardless of your home’s value. It’s a tough decision to continue purchasing a policy that feels more like a gamble than a safety net, particularly with the dread of not being covered when you might need it most.
It’s understandable that you’d hesitate to switch to a private flood insurance provider, given the stability that comes with the National Flood Insurance Program (NFIP). The peace of mind knowing that the government backs your policy is significant, even if it’s frustrating to see the costs rise so steeply. Many people in your position are grappling with similar concerns, as changing weather patterns and increased flooding risks make it a challenging landscape.
Have you considered reaching out to your insurance agent to discuss your increasing premiums? They might be able to review your policy or suggest ways to potentially lower your costs without sacrificing coverage. It also may be worthwhile to look into local resources or community programs that could offset some flood risks, even if you’re just outside a designated flood plain. You’re clearly taking the proactive steps by maintaining flood coverage, and hopefully, there are avenues to help manage those rising costs.