How do Flood Incidence Rates Affect Home Insurance Prices in Georgia?
SFHA Limitation Diagram
The burgeoning economy of Georgia buoyed by the many Fortune 500 and 1,000 companies in the state that employ millions of people and a thriving industrial and agricultural scene, a military presence evident in the army, navy, and air force installations scattered all over the state, and a superlative healthcare system that spreads even to the smallest of cities and towns are just some reasons that encourage job seekers to venture and settle here, buy houses, and raise families.
Rates & Budgeting
Possible new residents are naturally curious to know about the home insurance rates here and are especially keen to learn about the various factors that influence these rates. And so are many native Georgians who have just bought their dream homes after saving for years on end and would like to know how much they need to shell out every year so that they may adjust their budgets & plan accordingly.
Georgia is a flood-prone state and every year, numerous small to large-scale flooding events cause property damages worth billions of dollars. However, the incidence of flooding is not uniform across the length and breadth of the state—some areas are more prone to flooding than others. The incidence of flooding in a particular area is thus a crucial determinant of home insurance prices that homeowners in this area have to shell out. Knowledge about the areas that are especially flood-prone will help anyone who is contemplating buying a real estate property in Georgia and is wary about the insurance prices.
Flood-Prone Regions in Georgia where Homeowners Pay High Insurance Prices
The Atlanta Urban Zone has one of the highest incidences of flood in the state. According to archived climate data, this region experiences both small- and large-scale flooding events that cause damage to life and property. The proximity to the Atlantic Ocean makes the coastal belt of Georgia especially vulnerable to flooding. The Southeastern Coastal Plain region, especially Chatham County that comprises large and densely-populated cities like Savannah, experiences maximum flooding amongst the coastal areas. The Northeast Mountains of Georgia too have a high incidence of flooding across the year. It is worth noting that some of the major urban centers of Georgia like Athens, Augusta, and Columbus are prone to flooding.
Homeowners in the above-mentioned regions in Georgia have to pay high insurance rates. Thus, knowledge about the most flood-prone areas of Georgia often helps prospective home buyers decide where to buy their new houses. They should also keep in mind that if their houses are located in a Special Flood Hazard Area (SFHA), they would have to additionally buy a flood insurance policy. But, homeowners need not worry. The benefits of buying a flood insurance policy far outweigh the drain on their wallets or the risk in not having flood insurance.
Flood Insurance Policy in Georgia
According to the National Flood Insurance Program (NFIP), a house situated in a SFHA (as determined by the Flood Insurance Rate Map) has more than 25 percent chance of being damaged from floods during a 30-year period. The NFIP makes it mandatory that homeowners in these areas have to buy flood insurance policies and as a bonus they would be eligible to receive federal financing to buy, construct, or upgrade real estate structures on their insured properties. Many areas in Augusta are classified as SFHAs. But the government of Augusta advises homeowners even outside the ambit of the SFHAs to buy flood insurance policies.
Considering the high incidence of floods in Georgia, it is always a wise idea to insure your home if you live in an area vulnerable to flooding and also buy a flood insurance if mandated by the authorities. After all, your home is your greatest asset!