How much will my flood insurance cost is a simple, straightforward question; the answer, however, is complicated.

There are many variables that can affect premium cost, including the amount of insurance purchased, what it covers, the property’s flood risk and different deductibles.  Here is a list of the most common factors that will determine your actual rates:

• Year your home was built
• Exact location of your home
• Distance from water
• Construction design of the home
• Base flood elevation – elevation certificate
• Lowest elevation of your home – elevation certificate
• Insurance plan deductible

The National Flood Insurance Program (NFIP) only insures home values up to $250,000, which is not too comforting if your home’s value is considerably higher. Although that is the maximum amount of coverage from the NFIP, you may purchase flood insurance for additional coverage from a private insurance carrier.

Flood insurance provided by the NFIP, like any other insurance, has limitations to what they cover under their policies. Flood insurance protects two types of insurable property – building and contents. The first covers your structure, the latter covers your possessions; neither covers the land they occupy.

The two most common reimbursement methods for flood claims are:

• Replacement Cost Value (RCV): the cost to replace damaged property. It is reimbursable to owners of single-family, primary residence.
• Actual Cash Value (ACV): the cost of all other buildings and personal property (i.e. contents), insured to within 80% of the building’s replacement cost.

For additional information, visit the website for the National Flood Insurance Program at www.floodsmart.gov