How Much Does Flood Insurance Cost? Everything You Need to Know

Floods are the most typical natural catastrophe in the United States. And they can be ravaging: Just an inch or more of water damage can trigger more than $25,000 in repair work and lost residential or commercial property.

Flood insurance coverage is special due to the fact that a lot of policies are offered and backed by the federal government. (Homeowners insurance coverage typically doesn’t cover flood damage.)

But that important security comes at an expense, approximately $752 usually across the country in 2022. Many insurance policy holders have actually seen their flood insurance coverage premiums increase following a FEMA threat ranking system presented in December 2021.

Here’s just how much flood insurance coverage expenses now in addition to methods to conserve cash in the future.

What Is Flood Insurance?

Flood insurance coverage is a kind of residential or commercial property insurance coverage that covers a house or organization versus water damage triggered by flooding. Standard house insurance coverage doesn’t cover that type of damage.

Flood insurance coverage is offered in over 24,000 neighborhoods throughout the U.S. It’s needed for houses with government-backed home mortgages that being in locations considered “high-risk” by the Federal Emergency Management Agency (FEMA).

Many banks likewise need flood insurance coverage in high-risk zones.

Coverage is mainly released by the National Flood Insurance Program (NFIP), which deals with more than 50 insurance providers to offer its policies. Private business likewise offer flood insurance coverage, though these policies comprise simply a little portion of the general flood insurance coverage market.

How Much Does Flood Insurance Cost?

The typical expense of flood insurance coverage from the National Flood Insurance Program is approximately $752 a year, or about $63 a month.

Your particular flood insurance coverage expense will depend upon lots of aspects, including your house’s place, size and elevation.

For example, if you reside in a high-risk flood danger location — like zones A, AE or AO — your flood insurance coverage rates will be much greater than a house owner living in a lower-risk location.

Average Flood Insurance Costs by State

StateAverage PremiumNumber of Policies
United States $752 4,714,527
Alabama $723 50,278
Alaska $675 2,177
Arizona $748 24,221
Arkansas $903 12,673
California $841 191,488
Colorado $877 17,478
Connecticut $1,371 31,367
Delaware $726 25,391
District of Columbia $674 2,193
Florida $645 1,639,108
Georgia $703 76,822
Hawaii $662 58,455
Idaho $791 5,472
Illinois $989 33,538
Indiana $1,009 17,382
Iowa $1,126 10,621
Kansas $953 7,767
Kentucky $1,130 18,404
Louisiana $747 486,731
Maine $1,055 7,189
Maryland $539 62,977
Massachusetts $1,194 54,366
Michigan $897 19,573
Minnesota $962 7,503
Mississippi $848 58,336
Missouri $1,198 17,128
Montanta $835 3,848
Nebraska $961 7,883
Nevada $765 9,856
New Hampshire $1,051 7,123
New Jersey $959 198,009
New Mexico $865 10,644
New York $1,122 168,552
North Carolina $723 133,234
North Dakota $786 7,530
Ohio $1,088 25,127
Oklahoma $913 10,635
Oregon $867 24,065
Pennsylvania $1,267 47,889
Rhode Island $1,159 11,098
South Carolina $611 201,268
South Dakota $1,015 2,831
Tennessee $956 26,215
Texas $693 721,459
Utah $631 3,815
Vermont $1,412 3,054
Virginia $723 96,287
Washington $896 31,013
West Virginia $1,315 11,510
Wisconsin $918 11,379
Wyoming $902 1,565

Methodology: How We Calculated the Average Flood Insurance Premiums

The Penny Hoarder utilized information from the National Flood Insurance Program’s Policy Information by State report to determine the nationwide and state typical expenses of flood insurance coverage. The typical expense is the overall premium divided by the overall policies that were active since Aug. 31, 2022 for single-family houses, multi-family houses and organizations. The nationwide average does not consist of U.S. areas. Flood insurance coverage premiums consist of the federal policy charge that insurance policy holders pay to restore or acquire a policy.

4 Factors That Impact Your Flood Insurance Rate

Certain aspects, like your house’s place and age, make your residential or commercial property more expensive to guarantee. Policy information likewise assist figure out flood insurance coverage expenses.

1. Flood Risk

This might appear apparent, however your flood insurance coverage rates are mainly identified by how prone your house is to flooding.

Homeowners situated in what’s called an unique flood threat danger location pay the greatest flood insurance coverage rates, while individuals in moderate- and low-risk zones can normally get approved for much lower rates.

For years, flood maps were the main tool utilized by insurance coverage representatives and lending institutions to identify your flood threat. FEMA’s flood insurance coverage rate maps utilize various codes to designate a location’s flood threat.

Zones starting with the letter A or V — consisting of AE or V1 — are thought about danger locations. Zones starting with the letters B, C or X are low- or moderate-risk locations.

You can see what flood zone you reside in by checking out FEMA’s Flood Map Service Center and browse your residential or commercial property’s address.

Under FEMA’s Risk Rating 2.0 system, flood maps are still crucial, however the firm likewise now thinks about threats dealing with each specific residential or commercial property, such as range to a water source and the expense to reconstruct.

2. Home Construction

How your house is constructed likewise aspects into your flood insurance coverage expenses.

Some structure attributes that affect your flood threat:

  • Foundation type: Homes with above-ground structures are less susceptible to flooding than underground structures.
  • Number of floorings: Buildings with numerous floorings spread out threat over a bigger location.
  • Unit place: Units on greater floorings have a lower flood threat.
  • Construction type: Masonry walls carry out much better throughout floods than wood frame walls.

3. Coverage Types and Amounts

The more protection you require, the more your flood insurance coverage will cost.

  • For houses, you can protect as much as $250,000 in structure protection to cover damage to your house’s structure. You can likewise purchase up to $100,000 in personal effects protection.
  • For industrial homes, you can protect protection as much as $500,000 for the structure and $500,000 for the structure contents.

Renters can acquire individual property-only protection to guarantee their valuables.

Remember: Your home mortgage business might need you to acquire a specific quantity of structure and contents protection.

4. Deductible

Just like medical insurance and automobile insurance coverage, choosing a greater deductible will net you a lower flood insurance coverage premium.

A deductible is the quantity you pay out-of-pocket prior to flood insurance coverage gets the rest. So if your house suffers $100,000 in damage and you have a $2,000 deductible, you’ll be on the hook for the very first $2,000 prior to your insurance plan covers anything.

Is Flood Insurance Getting More Expensive? FEMA’s 2.0 Risk Rating

Flood insurance coverage rates have actually increased for countless Americans following the rollout of FEMA’s 2.0 Risk Rating system.

In the past, flood maps were the main tool utilized to determine somebody’s flood insurance coverage premiums.

FEMA states the Risk Rating 2.0 method does a much better task of determining each house’s real flood threat by taking extra aspects into factor to consider.

Risk Rating 2.0 computes your flood insurance coverage rates based upon the following flood threat aspects for your residential or commercial property:

  • Foundation type
  • Structure
  • Elevation
  • Replacement expense
  • Flood frequency/frequency of various flood types
  • Distance to water

FEMA’s more personalized method to run the risk of evaluation entered into result for brand-new policies in December 2021 and for existing policies in April 2022.

Risk Rating 2.0 assists keep NFIP remain solvent as claims increase however it’s likewise putting a monetary stress on house owners.

The brand-new prices system raised the expense of flood insurance coverage for about three-quarters of insurance policy holders, while about 20% of insurance policy holders saw a reduction in premiums.

While premium boosts are modest for a lot of insurance policy holders, individuals residing in high-risk zones — like low-lying seaside neighborhoods in Florida — will likely see their rates continue to increase every year.

FEMA isn’t enabled to raise flood insurance coverage rates by more than 18% each year.

However, according to an April 2020 report by the Congressional Research Service, “other categories of properties are required to have their premium increased by 25% per year until they reach full risk-based rates.”

This consists of non-primary homes, homes with considerable cumulative damage and those that sustained considerable damage because 2012.

The variety of homes across the country covered by the NFIP has actually decreased by more than 165,000 because the brand-new prices structure entered into result, according to FEMA information examined by The New York Times.

How to Save Money on Flood Insurance Coverage

Flood insurance coverage might be getting more pricey however there are actions you can require to lower your expenses.

Unfortunately, there’s no fast repair and you might require to make a substantial in advance financial investment to your residential or commercial property.

Flood Proof Your Home

Making a financial investment to alleviate your house’s flood threat can assist decrease your flood insurance coverage expenses in the future.

FEMA advises enhancements like raising energies, setting up flood openings, completing basements and raising your residential or commercial property.

You can take a look at FEMA’s Homeowner’s Guide to Retrofitting for more information about methods to secure your house versus flooding.

Get an Elevation Certificate

An elevation certificate is a file that information your house’s flood threat and elevation. You can supply an elevation certificate to your insurance coverage representative to figure out if it will decrease your flood insurance coverage expenses.

“An elevation certificate can help the rate if the property has a positive elevation,” stated Becky Mateus, local sales and marketing supervisor at Wright Flood. “If the elevation certificate does not help lower the rate, then it won’t be applied to the policy.”

To demand a copy of your elevation certificate, call your town or local government workplace and request for the floodplain supervisor. It may likewise be consisted of in your residential or commercial property deed.

If your house doesn’t currently have an elevation certificate, you’ll require to employ a surveyor or designer to develop one, which can cost about $600.

Go With a Higher Deductible

Picking a greater deductible or purchasing less protection is another method to decrease your flood insurance coverage premiums.

But be alerted: This cash conserving technique is dangerous.

A greater deductible methods you’ll pay more out-of-pocket if you require to sue with the insurance provider. And lower protection quantities might not properly secure your house or valuables.

Check for Community Discounts

If your neighborhood takes part in the NFIP’s Community Rating System (CRS), you might be qualified for a discount rate. The CRS is a voluntary program that rewards neighborhoods to carry out more powerful flood security steps.

Discounts on flood insurance coverage premiums through this program variety from 5% as much as 45%.

Policyholders in CRS neighborhoods conserve approximately $162, or 15%, each year on their flood insurance plan, according to FEMA.

Here’s a list of all getting involved neighborhoods.

Who Needs Flood Insurance? When Is Flood Insurance Required?

Property in high-risk flood locations with government-backed home mortgages are needed to have flood insurance coverage. Your bank might likewise need it.

Even if you’re not needed to acquire flood insurance coverage, it’s worth thinking about. About 40% of NFIP flood insurance coverage declares from 2015 to 2019 originated from insurance policy holders outside a high-risk flood location.

What Does Flood Insurance Cover?

Flood insurance coverage covers water damage to your house and valuables triggered by natural flooding such as overruning lakes and rivers, typhoon storm rise, a heavy rainstorm, quick snowmelt and mudslides.

There are 2 kinds of NFIP protection — structure protection and contents protection.

What structure protection guarantees:

  • The residential or commercial property’s structure, walls and staircases
  • Electrical and pipes systems
  • Furnaces and hot water heater
  • Refrigerators, ranges and integrated home appliances, like dishwashing machines
  • Permanently set up carpets
  • Cabinets, paneling, bookcases and window blinds
  • Detached garages
  • Fuel tanks, well water tanks and pumps, and solar power devices

What contents protection guarantees: 

  • Personal valuables, consisting of clothes, furnishings and electronic devices
  • Curtains
  • Washer and clothes dryer
  • Portable and window air conditioning unit
  • Microwaves
  • Valuable products such as initial art work and precious jewelry (as much as $2,500)

What Isn’t Covered by Flood Insurance?

Flood insurance coverage doesn’t cover all kinds of flood damage. Flooding that stems inside your residential or commercial property — like a burst pipeline — is normally covered by your house owner’s insurance plan.

Flood insurance coverage likewise won’t cover specific kinds of residential or commercial property harmed in a flood, consisting of:

  • Cars and other automobiles
  • Landscaping, wells, septic tanks, decks and patio areas, fences, seawalls, jacuzzis and pool
  • Currency, rare-earth elements, stock certificates and other important documents
  • Property kept in a basement

What Is Private Flood Insurance?

FEMA flood insurance coverage isn’t your only choice. You may be able to purchase flood insurance coverage from a personal insurance company to change or supplement your federal protection.

Private flood insurance coverage describes policies that aren’t underwritten and backed by the federal government. That implies they’re riskier due to the fact that a personal flood insurance provider can select not to restore your policy — or perhaps cancel it.

However, personal flood insurance coverage might be a great choice for some individuals, particularly those with high-value houses. NFIP just covers structure damage as much as $250,000 however some personal insurance providers, such as Neptune, deal policies with protection worth as much as $4 million.

How to Get Flood Insurance

To get an NFIP policy, call your house insurance coverage broker or representative. You can likewise discover a flood insurance coverage supplier by utilizing this tool on FEMA’s site, or you can call 877-336-2627.

The NFIP deals with more than 50 insurance providers to offer flood insurance plan, so you can normally get protection with the exact same insurance provider that offers your automobile or house owners protection.

To get personal flood insurance coverage, you’ll require to call various business straight. Some significant business consist of Neptune, Chubb and Aon Edge.

Frequently Asked Questions (Frequently Asked Questions)

Is Private Flood Insurance Cheaper Than NFIP?

Private flood insurance coverage might be more affordable for some house owners than a NFIP policy. It truly depends upon your policy type and protection information. 

In some cases, NFIP insurance coverage will cost less, normally in locations at a low threat for flooding.

What Flood Zones Require Flood Insurance?

High-threat flood locations start with the letters A or V on FEMA flood maps. This consists of zones A, AE, AH, A1-30, AO, AR, A99, V, VE and V1-30. 

If your residential or commercial property lies in a high-risk flood zone and you have a federally backed home mortgage, you’re needed to acquire flood insurance coverage.

How Long Is the Policy Period for NFIP Flood Insurance?

The term for a NFIP flood insurance plan is one year. There’s likewise a 30-day grace duration after the expiration throughout which you can restore your policy. 

Renewal policies are released so long as the application is gotten prior to the policy lapses and the premium is paid throughout the 30-day grace duration.

Rachel Christian is a Certified Educator in Personal Finance and a senior author for The Penny Hoarder.


A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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