Better Flood


Cost of Flood Insurance

What Private Flood Insurance options are available to me? How does the cost of Private Flood Insurance compare with that of NFIP?

This is a wonderful question and one that we frequently hear: What flood insurance options are available? For 50 years, the National Flood Insurance Program (NFIP), also known as the Government flood insurance policy administered by FEMA, enjoyed a monopoly on flood insurance. Although this policy is still an option, many people assume that it is the only one available.

Individuals can save significant sums of money with private flood insurance.

The National Flood Insurance Program’s total command over flood insurance led to exorbitant premiums for people, causing them to implore the government for a resolution. Congress responded in 2012 by sanctioning private flood insurance, providing alternatives to government or NFIP plans. The NFIP has been ineptly managed and frankly unjust to those obliged to buy in for home protection.

Our company is Flood Nerds, and we take pride in being here to offer assistance whenever you need it.

The National Flood Insurance Program (NFIP), a government initiative, stands as the sole source for five million high-risk flood zone residences. In recent times, tens of thousands of Americans have found themselves compelled to take the financial responsibility of flood insurance regardless of their lender’s stance.

The current state of the NFIP demands immediate repairs, yet political influence continues to impede progress. It seems the program is merely extended, rather than addressing the fundamental issues with flood insurance. In 2017, the program landed in the red, having exceeded its $30 billion capacity, which taxpayers are shouldering.

There’s a growing demand for fundamental reform of the program that pertains to floods throughout America. Among proposed changes is introducing competition to the NFIP, with a spotlight on options such as Lloyds of London flood insurance and other related ones.

It is disheartening to observe that the properties most susceptible to flooding, and thus the most vulnerable, are also the ones that opt out of purchasing invaluable coverage.

The risky conduct that so many engage in might be attributed to their belief in government bailouts, but why should we keep enabling this? For half a century, we’ve picked up the tab, and our federal administration needs to end this habit.

Since its inception in 1968, what have been the developments following the creation of this program?

Rapid construction in flood-prone areas, like coastlines, is facilitated by the program. Under political influence, even high-risk beachfront properties are excluded from high-risk flood zones. This misleads owners into buying government-subsidized policies with incredibly low premiums, that don’t reflect the actual cost of risk. However, the flood maps of the program fall behind new construction, and further development of paved land alters water flow. These are just some of the many issues arising from the program.

What Makes Flood Insurance So Expensive?

Historically, the government program has spent billions of taxpayers’ dollars on repairing houses that end up getting damaged again soon after. A single property has even been repaid 19 times, amounting to $912,732, despite the home’s value being only $42,024.

This year, authorities feel that lawmakers need to address the program, with private flood insurance reforms being seen as critical components to tackle.

Although new constructions are expected to be resistant to floods, any alterations in flood zone status due to political reasons will result in new properties being mapped out of high-risk (A or V) flood zones into low-risk (X-flood) zones which grant property owners to get government-subsidized policies.

Builders are currently not obliged to construct buildings in a manner that would mitigate flooding risks to the property.

Although the private flood insurance market is well-equipped to handle most properties, it’s wary of severe, repetitive-loss ones.

Lloyds of London specializes in flood insurance, providing reliable coverage and risk assessment on a global scale. With their vast resources, they can easily handle even the most catastrophic events, ensuring that they are there for you when you need them most.

Although the government program covers over five million homeowners, it’s merely a drop in the bucket for the number of properties situated in high-risk flood zones.

A public report uncovered how the NFIP determines pricing. Though the program requires an Elevation Certificate for each property, the rating is not based on specific, accurate information. Instead, outdated reports and inadequate satellite imagery and models are used, resulting in suboptimal ratings.

The program administrators are mandated by Congress to collaborate with local communities, instead of individual households, to map and survey floodplains.

This has determined that the NFIP underestimates risks for half of its policies while overcharging the other half. Such a practice is utter madness.

Lloyd’s of London Flood Insurance employs state-of-the-art technology for risk assessment, including complex computer modeling, laser mapping, and advanced satellite technology. This scrutiny results in highly accurate risk assessments, affording policyholders substantial savings. In flood zone ae, Lloyd’s premiums are half the cost of the standard NFIP, making them an excellent option for cost-savvy buyers.

Let’s look at NFIP policies vs Private flood insurance policies.

There are many options available now in regards to flood insurance but they basically fall into two main categories.

1_The National Flood Insurance Program (NFIP) also known as FEMA which is the Government option for flood insurance and has enjoyed a 50-monopoly on the flood insurance market.

If you have Nationwide flood insurance, State Farm Flood Insurance, Progressive Flood Insurance, Allstate flood Insurance or any of the logos below then you are buying an NFIP flood policy.

Not Private flood Insurance

The Private flood insurance market

Private flood insurance, such as Lloyds of London Flood Insurance, offers a flood coverage alternative to the National Flood Insurance Program (NFIP) and government insurance. Although there are multiple Lloyd’s of London Flood Insurance options to choose from, each has its own benefits. Don’t believe the notion that they’re all the same. Opt for a more effective approach to flood insurance and have a flood nerd shop your flood coverage.

We meticulously scour all the flood coverage options available in your area to guarantee that you get a great price without sacrificing coverage.

We include the National Flood Insurance Program (NFIP) in our shopping list because some government subsidies provide better premium than the private markets.

Lloyd’s of London Flood Insurance Market

There are several private flood insurance options available, despite some providers misleading consumers that they offer the only alternatives. And there are many Lloyd’s of London flood insurance options and they all have different underwriting appetites.

Lloyd’s had a extensive history – it’s reportedly the originator of modern insurance practice – Lloyd’s of London sets itself apart from most competitors by being a corporate entity, rather than just a company, and has successfully maintained operations for over three centuries. This structure allows multiple financial backers to combine their capital, effectively spreading the risk. If you’re interested, I have two blog posts that delve into the institution’s influence flood insurance market. You’ll find the links below.

Lloyd’s of London flood insurance

Private flood insurance vs NFIP

Lloyd’s insures the world for flood insurance, making them capable of covering natural calamities in India, Australia, and much of Europe. This is how insurance works: the objective is to distribute risks, and being present worldwide, they can do so seamlessly.

In this article, we will compare the costs of flood insurance and provide an estimation of the premiums.

How much does private flood insurance cost?

Lloyd’s of London Flood Insurance (option 1)

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Lloyd’s of London Flood Insurance. (option 1)
Annual premium in High-Risk flood zone is $849.75

We’re delighted to provide this option to our clients, although they may be specific about the risks they’re willing to take. They won’t accept any property that’s been flooded, no matter the circumstance.


While basement coverage is mostly excluded from all flood policies, a limited coverage option is still available. With this policy, you can receive up to $2,000 for expenses relating to temporary displacement whilst repairs are being carried out, as well as $2000 for any other structures. Should you have a large second structure on your property, we suggest considering an additional policy for adequate cover. Please get in touch with your agent to explore the options. Lastly, Lloyds of London flood policies don’t require an elevation certificate to get a good rate.

Private flood insurance – Lloyd’s of London Flood Insurance (option 2)

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Lloyd’s of London (option 2)
Annual premium in High-Risk flood zone is $1,050.75

Although this option is excellent, our clients can only benefit from it if their properties don’t fall under specific criteria. For instance, they won’t cover properties situated in designated floodways or those whose floors fall four feet below the Base Flood Elevation. If the BFE is 5368 feet, any floor below 5364 feet is ineligible. Moreover, they won’t cover properties that have had flood losses in the past.

While their basement coverage is limited to roughly 2% of the building, they still provide better coverage than the NFIP. Although it’s not ideal, it’s still better than nothing. Additionally, an Elevation Certificate is not required to rate. Furthermore, you can allocate a percentage of your coverage for loss of use, typically around 10%.

If you require coverage for other structures, easily add them to this policy by updating it. Remember to notify your agent about any other structures on the property; without them being explicitly listed on the policy, you won’t be covered for them.

Private Flood insurance – Private flood insurance (option 3) Not Lloyds,

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Annual premium in High-Risk flood zone is $2,358.79

This coverage option applies to properties with a single flood loss under $100,000, within the last five years. It meets NFIP standards, allowing a risk evaluation without an elevation certificate. Notably, the premiums are generally lower than those of NFIP, making it an appealing substitute for homeowners seeking attractive protection.

One standout option available is the ability to secure rates for up to five years. Nonetheless, we’ve determined this choice can come at a higher price than the NFIP’s in the second year. Consequently, we typically opt to switch back to the NFIP until we source another alternative.

Private Flood insurance – Lloyd’s of London Flood Insurance (option 4)

To avoid the co-insurance penalty, this option needs to reflect the replacement cost of the building. While $250,000 might be too low for your area, we can stick with it for now.

The policy offers $250,000 (RCV) property coverage, 20% standard contents coverage, 10% coverage for other structures and 10% coverage for loss of use with a $5,000 deductible.

Annual premium in High-Risk flood zone is $1,637.70

This selection allows consideration of a property that has had one flood loss before, provided the payout was under $50,000 and occurred more than five years ago. It requires coverage at Replacement cost, which differs from our other Lloyds options. This selection is generally reserved for properties that do not qualify for any of our other options.

We can adjust the coverage to reduce premiums. We offer coverage for almost all risks, without requiring an elevation certificate for rating. Our premiums are lower than those of both the NFIP and some of our other private flood insurance alternatives. However, this selection is only available in a limited number of states.


Private Flood insurance – Lloyd’s of London Flood Insurance (option 5)

Annual premium in High-Risk flood zone is $759.00

This choice would entertain accepting a property which suffered a single flood loss, as long as the payout was less than $15,000 for that claim. The policy is issued instantly through their seamless system without requiring an elevation certificate. Moreover, it comes with some exclusive coverages that include pool repair and refill.

Private Flood insurance – Lloyd’s of London Flood Insurance (option 6)

Annual premium in High-Risk flood zone is $1,720.10

This choice involves properties that sustained multiple flood losses, albeit none in the last five years. It’s worth noting that their Declaration delivery can be sluggish, so if you’re expecting a fast closing, we may recommend you go with a different option.

Please note that this list isn’t comprehensive, and we have many other options. We wanted to provide you with an idea of the cost of private flood insurance.

We shop all option and when we get the best price we will send that option to you.

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Have an Existing NFIP Policy? Private Flood Insurance May Be Cheaper

Does the cost of your flood insurance keep going up year after year? I get it. For years the federal government had a monopoly on flood insurance. Homeowners had nowhere to turn for cheaper coverage.

But that’s changed. There are now over 40 private insurance companies that cover flood risks. Shopping them all takes time. That’s where the Flood Nerds come in. All we do is shop for flood insurance.

Tell us about your property and we will shop your coverage with over 40 companies, including the Lloyds of London syndicate. Then we’ll compare private coverage with the NFIP. We find you the cheapest flood insurance. Getting a quote is fast, easy, and free.

Buying a Home and Need Flood Insurance Fast? Let a Flood Nerd Help!

Don’t let flood insurance delay your closing date. The Flood Nerds at Better Flood know every private insurance company and they also know what the lender needs to close the loan.

Many private lenders don’t require an Elevation Certificate and we can get you coverage even in high risk zones. When we shop your flood insurance you know you will get the best price and coverage and you know you will close on time

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Flood Insurance Experts

Flood Nerds know flood insurance. It’s all we do. Unlike general insurance and homeowner insurance agents, we know flood insurance. We know how to minimize costs and how to maximize coverage no matter what flood zone you live in.

We compare rates, coverage and requirements from over 40 private flood insurance companies. You get the best coverage at the best rate. It’s fast, it’s easy and it’s free to get a quote on flood insurance from a Flood Nerd.

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