Flood Insurance Guide for Cherry Hill, NJ

Flood insurance is one of those things many Cherry Hill homeowners do not think about until it is too late. Whether you live near the Cooper River or in a higher elevation neighborhood, understanding your flood risk and insurance options is essential for protecting your home and your investment.

Does Cherry Hill Have Flood Risk?

Yes, parts of Cherry Hill are in FEMA-designated flood zones. The Cooper River and its tributaries, including Pennykill Creek, run through portions of the township. Properties near these waterways are at higher risk of flooding, especially during heavy rain events, hurricanes, and nor'easters. However, large portions of Cherry Hill are in lower-risk Zone X areas, where flood insurance is recommended but not federally required.

For a detailed look at the flood zones that affect Cherry Hill, see our Cherry Hill Flood Zone Guide.

FEMA Flood Zones in Cherry Hill

Cherry Hill has properties in several FEMA flood zone designations:

• Zone A / Zone AE: High-risk areas with a 1% annual chance of flooding (the "100-year floodplain"). Flood insurance is mandatory for properties with a federally backed mortgage.
• Zone X (shaded): Moderate-risk areas with a 0.2% annual chance of flooding. Insurance is not required but recommended.
• Zone X (unshaded): Low-risk areas. Insurance is optional but available at lower rates.

You can determine your property's flood zone by using FEMA's Flood Map Service Center at msc.fema.gov or by checking the township's interactive map at chnj.gov.

When Is Flood Insurance Required?

Under federal law (the National Flood Insurance Reform Act of 1994), flood insurance is required when all three of these conditions apply:

1. The property is located in a FEMA-designated Special Flood Hazard Area (SFHA) — Zones A, AE, A1-A30, etc.
2. The property has a mortgage from a federally backed lender (FHA, VA, Fannie Mae, Freddie Mac, or a bank insured by the FDIC).
3. The loan amount is equal to or greater than the value of the property (or the property is in a community participating in the NFIP).

Even if flood insurance is not required, many homeowners choose to buy it anyway. According to FEMA, just one inch of water in a home can cause $25,000 or more in damage, and standard homeowners insurance policies do not cover flood damage.

How Much Does Flood Insurance Cost in Cherry Hill?

Flood insurance premiums in Cherry Hill vary based on several factors: your flood zone designation, the elevation of your home, the distance to water sources, the amount of coverage you choose, and your deductible. On average:

• Zone X (low-risk): Premiums can be as low as $200 to $500 per year.
• Zone A/AE (high-risk): Premiums typically range from $500 to $1,200 per year, but can be higher depending on elevation and coverage.
• New Jersey's average NFIP premium is around $933 to $1,200 per year, but Cherry Hill rates are generally on the lower end of that range thanks to the township's flood management efforts.

NFIP policies cap coverage at $250,000 for the building and $100,000 for contents. If your home is worth more than that, you may need excess flood insurance from a private insurer.

How to Buy Flood Insurance

Flood insurance is available through the National Flood Insurance Program (NFIP), which is administered by FEMA. You purchase it through a licensed insurance agent, not directly from the government. Most insurance agents in Cherry Hill can write NFIP policies. Some private insurers also offer flood insurance, sometimes at lower rates than NFIP.

Steps to get coverage:

1. Find your property's flood zone on FEMA's Flood Map Service Center.
2. Contact a licensed insurance agent who offers NFIP policies.
3. Get quotes for both building and contents coverage.
4. Consider an elevation certificate if your home is in a high-risk zone (this can lower your premium).

What Does Flood Insurance Cover?

An NFIP flood insurance policy covers:

• Building coverage: The structure of your home, including foundation, electrical and plumbing systems, HVAC equipment, permanent fixtures, and built-in appliances.
• Contents coverage: Personal belongings such as furniture, clothing, electronics, and valuables.

Flood insurance does not cover temporary housing, landscaping, or vehicles (your auto insurance covers those).

There Is a 30-Day Waiting Period

One of the most important things to know about NFIP flood insurance is the 30-day waiting period. Once you purchase a policy, coverage does not begin until 30 days later. You cannot buy flood insurance the day before a hurricane is forecast to hit. The only exception is when the policy is purchased in connection with a new home loan (the waiting period is waived).

Cherry Hill's Flood Prevention Ordinance

In June 2023, Cherry Hill adopted a Flood Damage Prevention Ordinance (Chapter 12 of the Township Code). This ordinance establishes a Floodplain Administrator, adopts FEMA's flood hazard maps, and sets construction requirements for properties in flood-prone areas. It is designed to reduce flood risk and maintain the township's eligibility for the NFIP.

Tips for Cherry Hill Homeowners

• Even if you are in Zone X, consider buying a low-cost flood insurance policy. Around 25% of flood claims come from properties outside high-risk zones.
• If you are buying a home in a high-risk zone, factor the cost of flood insurance into your monthly budget. Your lender will require proof of coverage at closing.
• Keep an elevation certificate on file. It can help you get a better rate if you contest your flood zone designation.
• Document your belongings with photos and receipts before a flood event.

If you are shopping for a home in Cherry Hill and want to understand flood risk before making an offer, Bob Millaway can help you interpret flood maps and connect you with insurance professionals.