When buying a new home, typically the owners purchase insurance to cover the structure, personal items and medical in case someone is hurt on their property.  In most cases; however, the standard homeowner’s policies do not include flood damage. Which means no coverage for damage caused by sewer backup or floods inside of your house. A homeowner should buy a separate policy or endorsement to add the coverage to your home insurance policy. The typical cost is approximately $40 to $50 per year.

Unfortunately, we have seen homeowners who have flood insurance with the bare minimum coverage, or their policy was limited. Generally, minimal coverage in non-flood zones works well. Though, in the event of a tropical storm or hurricane homeowner is at risk of incurring significant damage without adequate coverage. It is easy to protect yourself, without spending too much.

You can buy flood coverage from Pathak Insurance through the National Flood Insurance Program.  The maximum coverage is $250,000 for the replacement value of the structure and up to $100,000 (actual cash value) for your personal possessions. The cost for flood insurance coverage in low-to-moderate-flood-risk areas may range between $414 to $1,958; averaging around $650/year.  Naturally, premiums run higher in high-risk coastal, river side, and other areas.