Georgia’s homeowners insurance increases by $684 after adding flood Insurance
By: Ramu Garuda July.10, 2019
A Gavop analysis shows that Georgia’s homeowners pay an average homeowners insurance premium of $1,103, which is 10% lower than the national average of $1,228, at a deductible rate of $1,000 with a liability of $100,000 and $200,000 in dwelling coverage. An additional flood insurance coverage costs an average value of $684 per annum.
As a coastal state, Georgia is prone to hurricanes that strike the Florida Panhandle, bringing strong storm winds and rains to the interior regions. Georgia has been a victim of both the biggest and third biggest flooding events in U.S. history, namely Hurricane Katrina in 2005 and Hurricane Harvey in 2017. Thus, it is one of the 19 states where insurance firms are allowed to charge a hurricane deductible. Homeowners in Georgia are advised to protect their property with flood insurance that includes flood claims payments. They can insure their property against most damages caused by storms such as hurricanes other than flooding by paying a wind insurance premium.
The National Flood Insurance Program (NFIP) provides the maximum amount of flood coverage in the United States. More specifically, NFIP offers up to $250,000 of coverage for the structure of houses and an additional $100,000 for personal possessions.
Given the vulnerability to extreme weather, both Tybee Island and Jekyll Island offer the most expensive premiums at $1,200 to insure property in Georgia. Atlanta, the largest city in Georgia, reports an average home insurance premium rate of $1,187. Duluth and Alpharetta record the cheapest home insurance premiums, whereas Randolph County and Chatham County report the most expensive premiums at $2,461 and $1,958.
Homeowners would also benefit from protecting their properties from hail-related losses. According to Verisk Claims Solutions, Georgia ranks seventh in the United States in terms of average claims loss related to hail. Homeowners insurance generally covers hail damage to property including windows, roof, and decks.
Homeowners can lower their home insurance premiums by choosing a high deductible since they are less likely to claim minor damages, making them a lower risk for the insurance firm. The following graph shows that homeowners can save as much as $159 at a deductible rate of $2,000 compared to the deductible rate of $500 in Georgia.
ABOUT THE AUTHOR
Ramu Garuda
Ramu is a research analyst with over 9 years of analytics & research experience. Prior to joining the company, he worked with some of the prominent consulting and market research firms in India, including Pride Technology (Supporting consulting projects to PWC), RR Donnelly, and The Hackett Group. His skills include company profiling, benchmarking, data and trend analysis, industry analysis, and report writing across the industries. Ramu holds a Master’s degree in Finance and Marketing. He also has a bachelor’s degree in Biotechnology.
