How much does flood insurance cost?

The median premium for flood insurance from the National Flood Insurance Program (NFIP) is $786 per year. However, your flood insurance cost, like the cost of many insurance policies, is influenced primarily by how much risk you have. The more likely you are to file a flood claim, the higher your premium will be.

Flood insurance costs by state

The most common way for homeowners to get flood insurance is through the National Flood Insurance Program, a flood insurance provider managed by the Federal Emergency Management Agency (FEMA), so its premiums are a good place to look if you want to know how much flood insurance costs. According to data on FEMA’s website, the median cost of an NFIP flood insurance policy was $786 in August 2023.  

NFIP median flood insurance costs by state

Factors that affect flood insurance cost

Both the NFIP and private insurers offer flood coverage, and they generally consider the same factors when determining premiums: your risk, your home’s characteristics, and your policy details.

Flood risk

Your home's location plays a major role in your flood risk; therefore, it impacts your flood insurance premium too. For example, your home's distance to a water source and its ground elevation can be essential factors for pricing flood insurance. 

That's not to say that a flash flood event can't happen anywhere, but insurance companies look at the historical risk of flooding in your area. One way you can learn more about your property’s flood risk is to check out FEMA flood maps.

Characteristics of your home

The characteristics of your home and the way it was built play a significant role in the cost of flood insurance. For example, an older home is likely more susceptible to flood damage than a newer home that was built with the newest construction materials and building techniques. A home with masonry walls has a better chance of withstanding floodwaters than a building with wood frame walls. 

But your rate isn’t just about how resilient your home is to flooding. Certain materials are more expensive to repair and replace if they're damaged in a flood event. This plus the size of your home can increase your rebuilding costs, and that makes your home more expensive to insure.

Some insurers, including the NFIP, also look at things like your home’s foundation type, the height of the first floor, the total number of floors, and any flood mitigation features like flood openings or vents to determine your cost for flood insurance. 

Coverage details

As we mentioned, your home's estimated replacement cost value (i.e., the cost to completely rebuild your home after a total loss) determines how much flood coverage you need. But that’s not the only coverage detail that can influence your flood insurance cost. For instance, you may be able to choose higher deductibles to help lower your cost – just remember that means you're assuming more of the risk and you'll have to cover more of your repair costs if you have a claim. 

Another detail is the type of coverage you get. The NFIP is a good example of this. It offers separate building and contents coverage. These are typically purchased separately with separate deductibles. Those who purchase both types of coverage pay more than someone who only purchases building coverage. 

How the NFIP rates flood insurance

In the past, the NFIP based its premiums on several characteristics, including the type of property, how close the property was to a flood zone, and the property’s elevation in regards to its base flood elevation. 

However, that calculation didn’t take into account some important details, such as a home’s individual flood risk or cost to rebuild. So the organization created a new flood rating system called Risk Rating 2.0.

The new flood rating system uses a variety of flood risk data to set premiums based on each property’s individual risk, rather than the risk for an entire community or neighborhood. Some factors Risk Rating 2.0 uses set flood insurance rates include:

• Likelihood of your home flooding from various sources, such as flash flooding as well as floods caused by waves, high-water levels, coastal erosion, and more.

• Characteristics of your home, including foundation type and first floor elevation.

• Your home’s elevation and distance from coasts, rivers, lakes, and other flooding sources.

• The replacement cost value of your home’s structure.

• Elements in your home designed to help it withstand floods, such as flood vents.

• Nearby or relevant levee performance.

How to lower your flood insurance cost

Probably the best way to lower your flood insurance cost is to buy a home with very little flood risk. Flood Zone X is a good place to start, but you might also want to look for homes that are on high ground or far from rivers, lakes, and oceans. 

Current homeowners may want to consider upgrades that bring their homes up to new standards, such as: 

• Elevating your utilities. This means locating electrical panels, heating and cooling systems, water heaters, and any other utilities on a platform located above the base flood elevation of your home. Homes with utilities located above the base flood elevation may be offered a discount.

• Installing flood vents. Flood vents or openings let water drain out of your home. This can reduce the amount of damage done during a flood event. If your home already has flood vents, be sure to keep them properly maintained. 

• Modifying your basement. Filling in your basement or below-grade crawl space may save you money. In some high-risk areas, the NFIP won’t cover basements in new construction. Other properties with basements may see a 15% - 20% increase in their flood insurance premium. 

Another option is to increase your deductible. Raising your deductible decreases your flood insurance premium. Just be sure you can afford to pay the deductible in full before your coverage kicks in if you ever have to make a flood insurance claim. 

Finally, think about getting a flood elevation certificate. Flood elevation certificates document your property's location and flood zone, building characteristics, and lowest floor elevation. Having this information documented can help you get the most accurate flood insurance rates. 

What does flood insurance cover? 

Flood insurance from the NFIP consists of two types of coverage: building/structural coverage and contents coverage.

• Building/structural coverage protects:

• The insured building and its foundation

• Electrical and plumbing systems

• Furnaces and water heaters

• Refrigerators, cooking stoves, and built-in appliances like dishwashers

• Permanently installed carpeting

• Permanently installed cabinets, paneling, and bookcases

• Window blinds

• Foundation walls, anchorage systems, and staircases.

• Detached garages

• Fuel tanks, well water tanks and pumps, and solar energy equipment

• Contents coverage protects:

• Clothing, furniture, and electronic equipment

• Curtains

• Portable and window air conditioners

• Portable microwave ovens and portable dishwashers

• Carpets that are not included in building coverage

• Clothes washers and dryers

• Freezers and the food in them

• Certain valuable items such as original artwork and furs, up to $2,500

How to get flood insurance

The first step to getting flood insurance is to check if your current home insurance company provides flood insurance. If they don’t, then you need to:

• Research your options online. The NFIP partners with over 50 private insurers, plus you can purchase an NFIP policy online.  But there are also private insurers who offer their own flood insurance.

• Get quotes. You’ll need to apply for coverage much like you did when you got your home insurance. 

• Compare offers. Try to get a quote for an NFIP policy as well as a few from private insurers so you can compare options.

• Buy a policy. Pick coverage that best suits your home and budget.

Please note:  Some flood insurance providers have a mandatory waiting period for flood insurance. That means that if you sustain flood damage within the waiting period, you won't have coverage. 

For the NFIP, the waiting period is 30 days, but there are exceptions to this rule. For example, the waiting period may not apply if you’re purchasing flood insurance while making, increasing, extending, or renewing your mortgage.

Do I need flood insurance? 

If you have a mortgage on a property located in a region that FEMA has designated as a Special Flood Hazard Area, then you’ll have to get flood insurance if you want a federally backed mortgage. Some other mortgage lenders may follow this guideline; otherwise, flood insurance is optional. 

Whether or not you are required to carry flood insurance, it’s usually a good idea even if your home or business is in a low-risk area. Flooding can happen anywhere at any time. Poor drainage systems, summer storms, melting snow, neighborhood construction, and broken water mains can all result in flooding.

Here are some statistics that might convince you just how important flood insurance is: 

• Flooding has affected 99% of US counties since 1996.

• Policyholders outside of high-risk flood areas filed over 40% of all NFIP flood insurance claims.

• In high-risk areas, there is at least a one-in-four chance of flooding during a 30-year mortgage.

Federal disaster assistance is only available when the president declares a disaster. And even then, disaster assistance isn't designed to restore your home to its original condition or replace your possessions.

But making you whole after a covered loss is exactly what flood insurance is for.  With flood insurance, you can have your home and its contents restored in a covered claim up to your policy limits.