By: Ajay kumar Medagani July, 02, 2019
Recent insurance data analyzed by Gavop shows that homeowners looking to buy insurance from the top companies in New Hampshire will have to pay an average premium of $964 for Homeowners Insurance. Cheaper options are also available from other firms in New Hampshire, with the lowest premium being offered by Patriot Insurance Company at $128.
Most home insurance firms exclude damage from natural disasters in their standard policies. As a remedy, the National Flood Insurance Program (NFIP) provides a separate policy for flood coverage. NFIP offers a coverage of up to $250,000 for the home and up to $100,000 for personal possessions.
New Hampshire has a history of being affected by devastating floods, especially in the past two decades. Disasters were declared in New Hampshire after heavy flooding destroyed houses and displaced residents.
This, of course, provides a strong reason to insure one’s property from damage due to natural disasters. The increase in premium for such additional coverage depends on multiple factors, including the susceptibility of your property to natural disasters. Different cities are classified into different designated “risk” zones. If your area falls under a high risk zone, your insurance premium will be higher.
Purchasing additional flood insurance, which is not covered by standard policies, is recommended for New Hampshire residents. Flood insurance also covers damage to property by an external flood, such as the one caused by rising waters after a tornado. An inch of flood water can on average cause damage of up to $10,000.
For an average citizen who pays about $964 per year in homeowners’ insurance premiums, average flood insurance can lead to an additional cost of about $672 per year, totalling to about $1,646 in an average. Other additions for earthquake protection and windstorm coverage can make you poorer by several hundred dollars more. Areas like northeastern Massachusetts have been affected by some strong earthquakes in the past.
In hurricane-prone zones, hurricane deductibles are also a factor to consider. A hurricane deductible is usually 2% to 5% of the home insurance amount. That is if your home is insured for $1000,000, your deductible amount would be from $20,000 to $50,000.
Residents in North Rural tend to pay the highest premium and residents of Nashua have to pay a lower premium of $1,415 after the addition of flood insurance premium.
Homeowners can reduce their premium rates by installing safety features such as smoke detectors, burglar alarms, and CCTV cameras. The actual amount to be paid will depend on your agreement with the insurance firm after they inspect your property.
Ajay Kumar works as a data analyst with Gavop. A (software) engineer by profession, he utilizes his well-established programming skills in big data, to derive insights from a wide variety of data sets. A engineering graduate from JNTU his passion involves analyzing raw data, infographics and other visual aids for research.