How Are Flood Insurance Rates Determined?

If you are new to flood insurance, you may be wondering how flood insurance rates are determined and what you can do to lower your rates. And if you're not new to flood insurance, you may wonder these things as well.

Insurance companies look at several factors when determining rates; they include the level of flood risk, type of coverage, building location, design, and age of the building, and all utilities' location.

If your property is located in zones B, C, and X, you are considered a low-level flood risk. You will end up paying less than those areas marked A or V. These areas are at higher risk for flooding, and properties located in those areas pay more for flood insurance.

If you are looking for property in high-risk areas, mortgage companies will not loan money unless you purchase flood insurance.

Whether you have content and property insurance, or just content insurance for those who rent will also determine how much you will pay for flood insurance. If you lease the building, you will only need content insurance, which will cost you less than those who own the building.

It may seem like common knowledge, but not many people know that as time goes on and the older your home gets, the higher your insurance rate will go up. In flood insurance, older pipes mean a higher risk for leaks and bursting, causing severe water damage to the property.

The utilities in your home, such as heating and cooling systems, water heaters, electrical panels, and others, should be elevated so that you can avoid paying extra for insurance.

At Holt Flood Insurance, we know that this may seem like a lot, but we are here for you. If you are new to insurance, we can help you find the lowest rate out there. And if you're looking for a cheaper rate, we can help with that too.

We are also here to answer any of your insurance needs, no matter what it is. With over 30 years of flood insurance experience, Timothy Holt has never come across a question that he couldn't answer.

For more information on flood insurance, visit our website. Or give us a call at 1(540)809-1415. We will answer any questions you may have. Contact Holt Flood Insurance today.

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Here is what our clients are saying about us:

I have no problem giving you an A1 reference for taking care of the flood policies for me and Diane. I appreciate you working with the mortgage company: the surveyor and our previous agent. The result was a 75% reduction in our flood insurance premiums!
Mike Edwards

I have known Tim for many years and he is a man with great integrity, work ethic and one of the nicest persons I know. Over the years Tim has provided insurance counseling and advice to our company, for myself personally, as well as to our clients. Recently Tim, took time to analyze our flood insurance policy and he was able to make some excellent recommendations. Our flood insurance costs are now less and we have much better coverage. I recommend Tim to anyone without hesitation or reservation.
Edward Semambya, CPA

We contacted Mr. Holt for an estimate via email over the weekend prior to a closing on a property, hoping for a response on the following Monday to take with us with confidence in being insured at the settlement table on a Tuesday. He exceeded our expectations not once but in readily responding to the initial request and then to follow-up questions all during the weekend frenzy that occurs before closing. "Impressive and responsive customer service," for sure!
Ken Reuwer