West Central Florida homeowners who live near the coast are all-too-familiar with the legal obligation to carry flood insurance. But what about land-locked neighborhoods that sprawl inland from the Gulf of Mexico? Should homeowners in these non-coastal suburbs bother with flood insurance? And how would it affect the monthly household budget?

A Tampa CPA from Reliance Consulting, LLC, can help you decide whether carrying a flood insurance policy makes budgetary sense for a home located outside a high-risk flood zone. In a state as vulnerable to hurricanes as Florida, the question might not be whether you can afford flood insurance; it might be whether you can afford not to have it.

First, it’s important to know that most homeowners insurance policies do not cover flood damage to a structure or its contents. With that in mind, consider: In the period between 1994-2004, the average flood damage claim amounted to more than $33,000. And another statistic to ponder: About 25 percent of flood insurance claims come from moderate-to-low risk areas.

The Federal Emergency Management Agency (FEMA) encourages property owners to participate in the National Flood Insurance Program (NFIP). The average annual cost for an NFIP policy is $570, and can be purchased for as little as $119 in areas that qualify for a Preferred Risk Policy. Monthly premiums are calculated based on a number of factors, including:

• Age of the insured building
• Building occupancy and size
• Number of floors and elevation of lowest floor
• Location and amount of contents
• Flood zone location
• Deductible amount

A certified public accountant from Reliance Consulting can help you sort out all of your financial responsibilities, from tax preparation to budgeting for unforeseen circumstances, such as a flood. Contact us for a free financial health checkup.