How Much Does Flood Insurance Cost?

The cost of flood insurance can vary widely depending on a number of different factors, including your exact location and its history of flooding. Areas with a greater flood risk typically experience much higher flood insurance rates than those that aren't considered high-risk areas. The cost of your policy may also differ depending on whether you purchase coverage directly through the government or choose to get private flood insurance. Though the current average cost of flood insurance is $888 per year, your coverage rates may vary considerably.

If you're ready to find coverage, a local independent insurance agent can help you get set up with a flood insurance policy. Your agent can help you find the ideal amount of coverage at an affordable rate. But first, here's a breakdown of how flood insurance costs are calculated.

How Are Flood Insurance Rates Calculated?

Many different factors are evaluated to determine the cost of flood insurance for a specific property and area. One of the most important factors to understand is your specific flood zone. Flood zones are designated areas on an official Flood Hazard Boundary Map or the flood insurance rate map. Each area on this map is marked with a designated flood zone rating that reflects its estimated flood risk, determined by historical flooding trends. Your flood zone greatly impacts the cost of flood insurance and also whether residents, businesses, etc., in that area are required to have coverage.

Factors That Influence the Cost of Flood Insurance

It can be helpful to review and understand the specific factors that influence the cost of your flood insurance so your premiums make more sense. The Federal Emergency Management Agency (FEMA) uses the following criteria to determine flood insurance rates:

• Location: If you live in a specified flood zone, lenders typically require flood insurance. If you live elsewhere, you can choose to purchase a policy if you want coverage. For those who live in areas that are heavily prone to flooding, the cost of coverage will be higher. Proximity to bodies of water may also increase the cost of coverage.
• Coverage limits: Flood insurance covers your building and the personal property inside. Building coverage pays for damage to the structure, internal systems (like electric and plumbing), HVAC systems, and appliances. Personal property coverage is for your personal belongings, like furniture and food. The more expensive the property you cover, the higher coverage limits you'll need, and thus, the higher your premium will be.
• Risk of flood perils: Your flood zone determines your area's risk of various flood perils. Flash flooding isn't the only type of hazard your property can be affected by, though. Flood zones also consider the risk of coastal erosion, floods caused by high water levels, floods caused by wave movement, and more in a particular area.
• Type of property: Various characteristics of the property or building you cover impact the cost of flood insurance. For example, if your building is only one story or your office is located on the first floor, you might pay more for flood insurance. The type of foundation the building has can also impact your rates.
• Elevation: Your area's elevation can greatly impact its risk of flooding and flood perils. The same type of building can experience completely different flood insurance rates at high elevations than it would at a lower elevation. Your property's distance from flooding sources like lakes, coasts, and rivers also impacts the cost of flood insurance.
• Building value: The cost of rebuilding your property after a flood disaster also impacts the cost of flood insurance. The greater the cost of rebuilding the structure, the more expensive flood insurance must be.

A couple of additional factors that can impact flood insurance rates include the levee performance in your area. Also, any flood-withstanding features of your property, such as flood vents, can also impact your rates. The more flood-withstanding features your building has, the lower your flood insurance rates are likely to be.

How Do I Get Flood Insurance?

Flood insurance isn't always sold the same way other policies, like homeowners insurance, business insurance, or auto insurance, are. There are two major ways you can obtain flood insurance:

• NFIP policies: The NFIP is the National Flood Insurance Program. Historically, the federal government was the only flood insurance provider. 
• Private insurers: Private insurance companies now offer flood coverage in various states. Some major insurance companies that offer flood insurance include Progressive, REInsure Pro, and Central Insurance Companies. 

The easiest way to secure flood insurance, however, is by working with an independent insurance agent. Your agent can find the ideal flood insurance policy for you by shopping and comparing coverage options from numerous local carriers.

Where Is Flood Insurance the Most Expensive?

Flood insurance is the most expensive in areas with greater risks of flooding perils, as well as in areas with lower elevations and higher property values. Here are the most expensive states for flood insurance this year.

Top 5 Most Expensive States for Flood Insurance

Connecticut is the most expensive state for flood insurance currently. Since Connecticut is a coastal state with very high property values, coverage tends to be more expensive than in other areas. Properties located on or close to the coast experience the highest rates by far. 

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How to Save Money on Flood Insurance

There are a few ways you can reduce your flood insurance costs. Consider trying one of these methods to reduce your premium rates:

1. Ask about discounts: If you qualify for a discount, you can possibly lower your flood insurance costs. FEMA offers various discounts on its coverage, such as mitigation discounts, elevation certificate discounts, and community discounts. Your independent insurance agent can also help you find flood insurance discounts if you secure coverage through a private insurer. 
2. Elevate your property: Elevating your home and other property can possibly save you a great deal of money on flood insurance. If you live in a high-risk area, the more you elevate your home, the more you can save on flood insurance. Placing your utilities, such as heating and cooling systems, electrical panels, and water heaters, on a platform can also reduce your rates. 
3. Lose the basement: Basements pose the greatest flood risk to property. If you want cheaper flood insurance rates, choose or relocate to a home or office building without a basement. 
4. Increase your deductible: The lower your deductible, the higher your premium tends to be with any kind of insurance. Naturally, if you increase your deductible, your premium rates will drop. Just keep in mind that if you need to file a claim, you'll have to pay more out of pocket.
5. Move somewhere else: If you're currently located in a high-risk area, you could save a lot of money if you move to an area with a different flood zone designation. Moving further away from bodies of water can help you save a lot on flood insurance, as can moving to an area with greater elevation.

Your independent insurance agent can help you find any discounts you qualify for on flood insurance and recommend other ways to save money on your coverage, such as increasing your deductible.

An Independent Insurance Agent Can Help You Find Affordable Flood Insurance

When you're ready to protect your property against flood-related losses, an independent insurance agent can help you find flood insurance. Independent insurance agents can shop and compare policies and rates from multiple different carriers in your area. Overall, they'll get you matched to the policy that offers the best blend of coverage and cost. And down the road, your agent will be there to help file flood insurance claims for you or update your coverage as necessary.