Flood Insurance in New Jersey
Flood insurance in New Jersey costs an average of $933 per year for a policy from the National Flood Insurance Program (NFIP).
Find Cheap Homeowners Insurance Quotes in New Jersey
Flood insurance is not required in New Jersey. However, it's worth buying if you live in an area that is at high risk of flooding. That's because regular home and renters insurance policies don’t cover damage due to floods.
And home buyers in some places, like along the Jersey Shore or in a river floodplain, will need to buy coverage to qualify for most mortgages.
How much is flood insurance in NJ?
The average cost of flood insurance in New Jersey is $933 per year for a National Flood Insurance Program (NFIP) policy.
Flood insurance rates from the NFIP in New Jersey range from around $215 per year to more than $4,000 per year depending on where you live and the style of your home.
Average cost of flood insurance in NJ by city
City | Avg. annual cost |
|---|---|
| Aberdeen | $810 |
| Absecon | $866 |
| Alexandria | $1,420 |
| Allamuchy | $1,486 |
| Allendale | $1,027 |
Do I need flood insurance in New Jersey?
Flood insurance is not a legal requirement in New Jersey or any other state. But mortgage lenders may require you to have flood insurance if your home is in a special flood hazard area, or SFHA.
A special flood hazard area has a 1% chance or greater of flooding each year. These areas are also sometimes referred to as 100-year floodplains. While a 1% chance may seem small, it means that homes in an SFHA have around a 1 in 3 chance of flooding over the course of a 30-year mortgage.
Some mortgage lenders may require you to have flood insurance if you live in an area with a moderate risk of flooding, like the Jersey Shore.
Regardless of whether you're required to have flood insurance, many New Jersey homeowners should consider buying coverage. Nearly a quarter of floods occur outside flood zones. And a single inch of water can cause $25,000 of damage to your home, according to FEMA.
Your homeowners insurance policy won't cover flood repairs, so buying flood insurance is the only way to protect your home and belongings against water damage. [/panel]
Find Cheap Homeowners Insurance Quotes in NJ
Do I live in a flood hazard area?
New Jersey homeowners can use the FEMA flood map search tool to see if their home is in an area at risk of flooding.
If you live in a high-risk flood zone, you'll need an elevation certificate to purchase flood insurance. The elevation certificate may be included with your property deed. If you're buying a home, the seller or developer should have a copy of the certificate.
Most flood zones are near oceans, rivers or other major bodies of water. But whether you're in an SFHA is not a simple matter of how far you live from a body of water. Your home's elevation and flood control measures like levees make a much bigger impact on your flood risk.
How to get flood insurance in New Jersey
Most flood insurance sold in the U.S. is backed by the government-sponsored National Flood Insurance Program (NFIP). Some private companies also offer their own policies.
When shopping for flood insurance in New Jersey, you should compare quotes from both the NFIP and private flood insurance companies.
You should start by getting an NFIP flood insurance quote from your current home insurance company if it offers coverage.
Flood insurance policies backed by the NFIP are available from most insurance companies in New Jersey. An National Flood Insurance Program policy costs the same amount no matter where you buy it from. So there's no need to get NFIP quotes from multiple companies.
If your home is damaged in a major disaster, the claims process will be much easier if you have your home and flood insurance with the same company.
Largest NFIP flood insurance companies in NJ
Private flood insurance companies tend to offer more coverage options than the NFIP.
That means they're typically a better fit for people who own expensive homes or other property.
Unlike NFIP policies, private flood insurance policies have different prices, depending on the company. That means you should compare rates from multiple companies to find the best rates, just like with home or auto insurance.
The easiest way to compare private flood insurance quotes is to work with a local independent insurance agent. Independent agents typically have access to rates from multiple insurance companies, which can save you lots of time.
Largest private flood insurance companies in NJ
AXA SA | 14% |
|---|---|
| Zurich | 14% |
| MS&AD Insurance | 11% |
| AIG | 11% |
What does flood insurance in New Jersey cover?
Flood insurance policies protect the structure of your home and its contents.
Structure of your home includes:
- Walls
- Roof
- Electrical and plumbing
- Built-in heating and cooling systems
- Detached garage
- Built-in appliances
Personal property includes:
- Furniture
- Clothing
- Electronics
- Portable heating and cooling systems, like window air conditioners
- Portable appliances, like microwaves
You can choose the amount of coverage you need to protect your home. However, the National Flood Insurance Program (NFIP) has maximum limits of $250,000 for the structure of your home and $100,000 for your personal property. People with expensive homes and belongings may be able to get higher limits with private flood insurance.
NFIP-backed flood insurance also has a number of coverage limitations.
Things not covered by NFIP flood insurance include:
- Damage not directly caused by flooding, like mold
- Damage caused by earth movement, even if it's a result of flooding
- Damage to the land you live on, like erosion
- Damage to cars
- Damage to anything outside, like swimming pools or fences
- Damage to currency
- Finished basements and any items kept in the basement
If you need coverage for any of these things, consider purchasing flood insurance from a private company.
What affects the cost of flood insurance?
Your home's location, including both its distance from and elevation above a body of water, has the biggest impact on NJ flood insurance prices.
Homes at the highest risk of flooding (according to the Federal Emergency Management Agency) will have the highest prices.
The likelihood that your home will flood is determined by the height of your home's lowest floor compared to how high the water is expected to rise in a 100-year flood. This is called the base flood elevation (BFE).
Example
If a 100-year flood in your area is expected to reach 10 feet above sea level, and the floor of your basement is 11 feet above sea level, your house is 1 foot above the base flood elevation. The lower your base flood elevation is, the more expensive your flood insurance rates will be.
Homes located near the coast, a large body of water or a river will pay much more for flood insurance. These zones are typically in a zone that starts with an "A" or "V".
Other factors that influence your flood insurance rates include:
- Coverage amount: The more coverage you have on your flood insurance policy, the higher your rates will be. It's important that you have enough coverage to rebuild your home if it's damaged by a flood.
- Deductible amount: If you lower your deductible, you'll get a bigger payout after a flood damages your home, but you'll also pay more each year for coverage.
- Age of your home: Older homes tend to be built with different materials than newer ones. In addition, homes built before FEMA's Flood Insurance Rate Maps (or FIRM flood maps) were introduced in their areas are generally less expensive to insure.
- How often you live in the home: Vacation homes or part-time residences are much more expensive to insure than your primary residence.
Frequently asked questions
Can you buy flood insurance in NJ?
Yes, you can buy flood insurance in New Jersey. Homeowners have the option of getting a government-backed NFIP policy or buying coverage from a private flood insurance company.
Who writes flood insurance in NJ?
There are lots of companies in New Jersey that offer flood insurance. Homeowners can buy a National Flood Insurance Program (NFIP) policy from most major insurance companies, like Allstate, Liberty Mutual and USAA. There are also more than 40 companies that offer private flood insurance in New Jersey.
How much is flood insurance in New Jersey?
New Jersey homeowners pay an average of $933 per year for a National Flood Insurance Program (NFIP) policy. But rates vary from around $200 per year to more than $4,000 depending on how close your home is to the water, whether it's raised off the ground and other factors.
Methodology
To find the average cost of flood insurance in New Jersey, ValuePenguin studied public data provided by the National Flood Insurance Program (NFIP).
Market share data for the largest flood insurance companies in New Jersey was provided by S&P Global, a financial data resource for the insurance industry.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.