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NEWARK, NEW JERSEY - SEPTEMBER 02: A cone blocks off a flooded Van Buren Street on September 02, 2021 in Newark, New Jersey. Gov. Phil Murphy declared a state of emergency due to Tropical Storm Ida which caused flooding and power outages throughout New Jersey as the Northeast was hit by record rain and tornadoes. Numerous deaths in New York and New Jersey have been blamed on the storm. NY Gov. Kathy Hochul has also declared a state of emergency. (Photo by Michael M. Santiago/Getty Images)
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When it comes to issues with flooding, most people associate the widespread flood damage caused by hurricanes and major storms with states like Florida and Louisiana. However, there are lots of other states and areas that are at risk of flooding. FEMA data shows that 99% of counties in the United States have experienced a major flooding event in the past 20 years.

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That includes New Jersey, where residents are at risk of being exposed to water damage as a result of flooding. However, it’s important to understand that standard homeowners’ insurance policies often do not include flood coverage, so it may be important for residents to secure flood insurance policies, which can typically be done either through an existing insurance provider or another insurer.

By obtaining a flood insurance policy in New Jersey, you may be able to avoid hardships from the financial costs of making repairs due to flooding, which can cause catastrophic amounts of water damage to your home. Read on to find out more about New Jersey flood insurance and whether or not obtaining a policy is the right decision for you.

Why New Jersey homeowners need flood insurance

According to FEMA’s historical data on flood risk and costs, New Jersey is one of the states at the highest risk for flooding. In fact, every single county in New Jersey experiences 50 or more flood events in any given year. Furthermore, the average claims payment in New Jersey is nearly $38,000. That means families who do not have flood insurance for their homes could be facing out-of-pocket costs in excess of $30,000. With so much flooding activity in the state, it’s essential for New Jersey residents to obtain flood insurance as soon as they can.

Cost of flood insurance in New Jersey

The National Flood Insurance Program (NFIP) reports that the average flood insurance policy in New Jersey costs $954 annually. However, the cost of insurance may vary depending on key factors that are considered during premium calculation. Such factors include:

  • Location
  • Flood risk
  • Coverage options selected
  • Age and design of the home
  • Deductible amount
  • Amount of building/contents coverage
  • Home value

When to purchase flood insurance

Some homeowners may choose to put off their flood insurance needs until a major storm is expected to arrive. However, this plan can end up backfiring as most flood insurance providers require that policyholders wait at least 30 days before their policy becomes active and they can submit a claim. Since all of New Jersey’s counties experience an average of 50 floods or more throughout the year, it’s imperative that homeowners secure flood insurance coverage as soon as they own property in the state. If it’s not possible to secure coverage straight away, New Jersey residents should at least consider purchasing coverage well ahead of the seasons with the highest rainfall (late spring and summer).

How to purchase flood insurance in New Jersey

Purchasing a flood insurance policy in New Jersey is as simple as contacting your current provider to add optional flood coverage. And if your current provider does not offer optional flood insurance, you can seek out coverage through the NFIP network of flood insurance providers. There are a broad range of choices for flood insurance providers in the area due to the large number of flood events that occur in the state. Insurers typically offer two types of flood insurance policies: dwellings coverage and contents coverage. Dwellings coverage offers financial protection for structural damage to your home while contents policies cover any damage incurred to personal property within your home. Be sure to review your flood insurance policy carefully with your provider to ensure your coverage needs are met prior to a water damage event.

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