Present Value of Flood Insurance Premiums at Various Discount Rates
| Present Value of Insurance Premiums under Discount Rates of | ||||
|---|---|---|---|---|
| Value of Houses | Annual Flood Insurance Premium | 3% | 5% | 7% |
| $75,000 | $203 | $6,742 | $4,055 | $2,896 |
| $83,998 | $226 | $7,505 | $4,514 | $3,224 |
| $200,000 | $540 | $17,999 | $10,800 | $7,714 |
Note: The flood insurance premium for an average-valued single-family house in the 100-year floodplain, without a basement and with estimated base flood elevation of 3 ft or more, is equal to $226. This is calculated using 0.27 as the annual postfirm construction rate per $100 of coverage as designated in the National Flood Insurance Program flood insurance manual.