Do New Jersey Homeowners Need Flood Insurance?

For those who are homeowners in New Jersey, flooding is a threat. Many individuals and families wonder if they need flood insurance protection for their home. Unfortunately, New Jersey has one of the highest property damage levels due to flooding in the country. As a result, flood insurance is required in the state for properties on a 100-year floodplain with a federally backed or regulated mortgage. With the significant flood risk in New Jersey, it is in your best interest to be equipped with flood insurance. The frequency of floods in NJ, considering how much the repairs can cost, make flood insurance a sound investment. Homeowners should cover the structure of their home and their belongings in the event of flood damage. Note that your standard home insurance policy does not cover these things. Flood insurance in the United States is offered through the National Flood Insurance Program (NFIP), and private insurers can provide a more personalized flood insurance coverage with specified limits.

Is Flood Insurance a Necessity in New Jersey?

New Jersey residents should consider that there are currently 352,000 people at risk for coastal flooding. It is estimated that by 2050, approximately 110,000 more individuals in the state will be added to that number due to rising sea levels. Plus, roughly 70% of New Jersey real estate needs repairs a minimum of five times due to flood damage. The average payout per claim is estimated at $25,000. What’s more, the National Oceanic and Atmospheric Association (NOAA) found that there were almost 74 floods per county over the 10-year period of 1996 to 2016.

You can contact an agent to help you determine which flood zone your house is in, as well as flood coverage rate estimates. According to FEMA standards, if you live in an area of New Jersey that is classified as either a “V” or “A” zone on the flood map, you are in what is considered a Special Flood Hazard Area. These very high-risk zones are almost always considered mandatory flood coverage areas by mortgage lenders.

Even for those who do not live in a high-risk flood zone, flood insurance is a basic protection, as a large chunk of flood insurance claims come from low-to-moderate flood zone areas.

What is the Cost of Flood Insurance in New Jersey?

The price of flood coverage in New Jersey can significantly vary as it is based on a variety of factors, such as:

  • The amount of flood coverage purchased
  • Your chosen deductible
  • The location of the house
  • How old the house is
  • The home’s construction type

If you have a new build constructed on a floodplain, the elevation of the lowest floor compared to the Base Flood Elevation. You can check the New Jersey flood map to see what kind of risk level your house is in to get an idea of how your flood premium would be affected, or contact an Augusta flood insurance agent today so you can protect your home before it is too late.

About Provident Protection Plus

At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.