What's the Cost of Flood Insurance?
Federal flood insurance costs $818 per year or $68 per month on average.
Find Cheap Homeowners Insurance Quotes in Your Area
Your flood insurance rates depend on several factors including where you live, how close you are to a large body of water and your home's elevation and construction. The Federal Emergency Management Agency (FEMA) must also take your home's value into account when setting federal flood insurance rates.
How much is flood insurance?
The average cost of National Flood Insurance Program (NFIP) flood insurance in the U.S. is $818 per year or $68 per month.
Keep in mind, this cost includes coverage for your house and your personal belongings. You can lower your monthly rate by just buying one type of coverage.
Most people buy flood insurance from the National Flood Insurance Program (NFIP). The NFIP works with private insurance companies to sell policies. That means you'll get the same rates and coverage regardless of which company you choose.
The government sells most of the flood insurance policies in America through the NFIP. However, you can also buy private flood insurance. It's a good idea to shop around since private flood insurance can cost less than a similar NFIP policy in some areas.
Cost of flood insurance by state
Find Cheap Homeowners Insurance Quotes in Your Area
Average flood insurance rates are as low as $658 per year (in Utah) and as high as $1,450 per year (in West Virginia). That's a difference of almost $800 per year. National Flood Insurance Program flood insurance rate differences may reflect factors like the cost to rebuild a home, flood frequency and the amount of damage caused by a typical flood.
Average cost of flood insurance by state
State | Average cost per year |
|---|---|
| West Virginia | $1,450 |
| Connecticut | $1,306 |
| Kentucky | $1,272 |
| Pennsylvania | $1,261 |
| New Jersey | $1,247 |
The cost you pay for FEMA flood insurance can differ dramatically within a state and, in some cases, within a single city.
When buying flood insurance, how close you are to a large body of water, your home's elevation and how much it would cost to repair your house will all likely play a larger role in determining your rate than the state you live in.
Risk Rating 2.0
Risk Rating 2.0 is the National Flood Insurance Program's new way to set flood insurance rates. Before Risk Rating 2.0, the NFIP mainly looked at the location of your house when setting rates. Now, it also uses other factors like your home's value, elevation, how your house was built and distance from the nearest body of water when setting rates.
All FEMA policies had to follow Risk Rating 2.0 rules as of April 2023.
What does flood insurance cover?
Flood insurance covers damage to your home and the cost to repair or replace your personal possessions. FEMA flood insurance requires that you buy each policy separately. Many private flood insurance companies let you buy both coverage types together.
-
Building property coverage pays for flood damage that directly impacts your home. Coverage includes your home's foundation, electrical and plumbing systems and HVAC systems. It also pays to replace some major appliances, such as refrigerators and stoves.
-
Personal property coverage pays for flood damage to your personal belongings. This can include things like ruined clothes, furniture and portable appliances like a vacuum cleaner. Policies typically have smaller cost limits for valuable items like artwork and jewelry. For example, if you lost a set of earrings worth $10,000 in a flood, an NFIP policy would only pay $2,500, even if you're well below your total coverage limit.
You can get up to $250,000 worth of building property coverage and up to $100,000 of personal property coverage with NFIP flood insurance. The average flood insurance payout is $69,000, which is well within NFIP coverage limits.
If you want higher coverage limits, consider buying a private flood insurance policy. Companies like Nationwide sell policies with up to $1 million in physical property coverage and up to $250,000 for temporary living costs like hotel or apartment stays.
For those with higher coverage needs, Chubb sells private flood insurance with policy limits of up to $15 million. Keep in mind that private flood insurance isn't as widely available as FEMA flood insurance.
Shopping for flood insurance can sometimes be confusing because companies sell both NFIP and private flood insurance. You can't buy NFIP flood insurance directly from the government.
While some companies only sell one type of flood insurance, many sell both. It's a good idea to clarify what type of insurance you're looking for when you talk to an agent or company representative.
Do you need flood insurance?
Most mortgage lenders require that you get flood insurance if you live in a flood-prone area, called a Special Flood Hazard Area (SFHA). These areas have a roughly 1 in 4 chance of flooding over a 30-year period.
Ninety percent of natural disasters in the U.S. involve flooding.
You can find out if you live in a high-risk flood zone by looking up your address on the FEMA Flood Map Service Center.
Even if you don't live in a high-risk zone, you should at least consider purchasing flood insurance. Roughly 40% of all flood insurance claims come from low-to-moderate flood-risk areas. You may also qualify for lower rates if you live in an area that has a lower risk of flooding.
Does homeowners insurance cover flood damage?
Homeowners and renters insurance does not pay for flood damage.
Keep in mind that insurance companies define flooding as an event where floodwater covers at least two or more acres of normally dry land (or two or more properties) for your flood insurance to kick in. Floods usually encompass overflowing river banks, flash floods and hurricanes, but not water damage caused by a leaky pipe.
Homeowners insurance sometimes pays for water damage caused by a broken pipe or a backed-up sewer, although this is often sold as an add-on coverage option. It may also cover rain damage. For example, if a storm breaks your window and rain gets in your home, your homeowners policy will pay to replace your carpets.
If you rent, your landlord is responsible for any flood damage to your home's structure. However, you might consider a renters flood policy to protect your personal items in the event they get damaged or destroyed by floodwater.
Renters can buy a FEMA flood insurance policy with up to $100,000 in coverage. Private insurance options are also available.
Frequently asked questions
How much is flood insurance?
National Flood Insurance Program (NFIP) flood insurance costs $818 per year on average. Your costs will depend on factors like where you live, your home's elevation and how the home was built.
What is Risk Rating 2.0?
Risk Rating 2.0 is a new way of setting NFIP flood insurance rates. Risk Rating 2.0 lets FEMA consider multiple factors, including your home's value, the way it was built and nearby bodies of water when setting rates.
Is flood insurance tax-deductible?
Flood insurance for your home is not tax-deductible on your federal tax returns unless you use some or all of your home for business purposes. Similarly, flood insurance for commercial properties may be tax-deductible.
Methodology
The most recently available rate data and state-specific breakdowns came from the National Flood Insurance Program. Private flood insurance coverage limits came from the Nationwide and Chubb websites.
Other sources include the Department of Homeland Security and Floodsmart.gov.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.