Average Cost of Flood Insurance yesensure

Average Cost of Flood Insurance

The flood is coming. As always, the National Flood Insurance Program (NFIP) was a great source of help for people who lost their homes in floods and needed to replace them with new ones. The average cost is $734 per year, which makes it easy for people to afford.

It’s been a rough year for Rick and his family. They have had to deal with the loss of their father, extreme flooding in their town, and now an expensive insurance bill that they can’t afford. It’s hard enough dealing with these disasters without all of the stress on top of it. The price has gone up as water is always at risk near them, but not one single person should have to worry about these things when they are already struggling so much!

Average cost of flood insurance by state

We all know that the Federal Emergency Management Agency (FEMA) is responsible for managing and maintaining flood insurance coverage. And, as you can imagine, this coverage varies depending on which state it’s being accessed from. As of December 2016, the average annual premium ranged anywhere between $518 and $957 per year! These are two very different prices that represent a difference of nearly $920 over time in premiums. With such a large range, it’s important to take note of where you live before deciding to purchase or not purchase insurance for your property. You’ll want to be sure to make an informed decision about what best fits your needs!

Have you been thinking about buying flood insurance in the past but couldn’t decide which state was cheapest? Well, have no fear because I am here to help. The table below shows what each state’s average homeowner pays for flood insurance:

Rank StateAverage CostDifference from Average
51Florida$592-19.30%
50Maryland$616-16.10%
49Texas$618-15.80%
48North Dakota$663-9.60%
47Hawaii$678-7.60%
46Georgia$689-6.10%
45Alabama$698-4.90%
44South Carolina$699-4.80%
43Louisiana$707-3.70%
42Arizona$711-3.10%
41Utah$7350.10%
40North Carolina$7390.70%
39Delaware$7481.90%
38Nevada$7512.30%
37Idaho$7644.10%
36Virginia$7725.20%
35Mississippi$7846.90%
34District of Columbia$81210.70%
33Montana$82412.30%
32California$85216.10%
31Minnesota$87218.70%
30Alaska$90923.80%
29New Mexico$91224.20%
28Oregon$91224.30%
27Oklahoma$91925.10%
26Arkansas$92526.10%
25Colorado$93026.80%
24Washington$93727.70%
23Tennessee$94028.10%
22New Jersey$95029.40%
21Kansas$97232.50%
20Wyoming$99435.40%
19South Dakota$99435.50%
18Wisconsin$1,01237.90%
17Nebraska$1,04041.70%
16Michigan$1,05443.60%
15Kentucky$1,09549.20%
14Illinois$1,09649.30%
13New Hampshire$1,09849.60%
12Indiana$1,10049.90%
11Iowa$1,11551.90%
10Maine$1,11952.40%
9Ohio$1,15156.80%
8Missouri$1,15256.90%
7New York$1,23167.70%
6West Virginia$1,27373.40%
5Massachusetts$1,29476.30%
4Pennsylvania$1,30577.80%
3Rhode Island$1,41893.20%
2Connecticut$1,471100.40%
1Vermont$1,512106.00%

The higher a state’s ratio, the more likely it is that floods are impacting its residents.

For example: Data calculated by dividing each State’s total written premiums by number of flood insurance policies in force has revealed some interesting findings about which states have been most affected and why.

Dear reader,

It is interesting to find out that the average cost of flood insurance appears to be cheaper in the South. Yet, prices can still depend by what type of company you are looking for. For example, if you were to look on NFIP policies or private insurers within a state. The most accurate price would be found by going month-to-month and checking which one has the best deal.

Highest average flood insurance costs

The NFIP flood insurance premiums in New England are among the highest in the country. Topping this list is Vermont with it’s average annual premium of $1,512. Connecticut falls second on the list at an average annual premium of $1,471. Rhode Island and Massachusetts also rank highly with their respective averages of $1418 and $1294 respectively.

StateAverage Monthly Cost
Vermont$1512
Connecticut$1471
Pennsylvania$1418
Rohde Island$1305
Massachusetts$1294

Note: Most expensive states for flood insurance

Lowest average flood insurance costs

It’s been a number of years since the great flooding that ripped through Louisiana, Texas and Florida. The three states were among the more affordable places to find NFIP coverage. In fact, Florida was the cheapest place to get flood insurance, on average. Costs by state come down to the amount of flood coverage homeowners receive on their policies which can be in part determined by flood zones.

Recently however there has been an uptick in floods across all three states and as such rates for residents have gone up considerably over recent months in light of this change in trends.

StateAverage Monthly Cost
Florida$592
Maryland$616
Texas$618
North Dakota$663
Hawaii$678

Note: Cheapest states for flood insurance

Cost of private flood insurance

With the National Flood Insurance Program (NFIP) and private insurance companies slowly phasing out their products, the TFIA is now one of few options available for most Americans. In response to overwhelming demand, TFIA expanded its coverage to include online quotes in 48 states– find a rate today with just a couple clicks! And while every company has slightly different policies depending on place of residence and home size, customers can expect to enjoy flexible payment plans as well as many additional features like extended warranty and lead paint remediation.

Calculate, store and send information on the costs of private flood insurance – rates aren’t affected by state borders so much as by your distance from the water’s edge. Below you’ll find samples for three FEMA-designated flood zones in three states, as well as premiums for homes without an elevation certificate from FEMA. You’ll see that similar homes have fairly similar prices across these states–rates are identical in Texas and Florida. The estimator provides a quick snapshot of how much it would cost to insure your home against flooding hazards with each coverage level, if you wanted to buy them at today’s NAVY actual rate (not including standard deductibles).

StateV Zone – no elevation certificateV ZoneA ZoneB Zone
StateV Zone – no elevation certificateV ZoneA ZoneB Zone
New Jersey$13,658$9,219$2,715$491
Florida$13,660$9,222$2,717$491
Texas$13,660$9,222$2,717$491

Cost of private flood insurance, heavily influenced by FEMA’s flood maps. Regardless, the agency’s mapping accuracy has drawn criticism from both insurers and homeowners.

What Does Flood Insurance Cover?

In the early 2000s, a family from Houston (where flooding was becoming more common) decided to move away. They were planning on buying their first home in Austin, Texas, and they wanted to be safe from floods. The father was worried about things such as mold so he went online to find out what kind of insurance needed for this new property. He found that private flood insurance is recommended because it provides coverage for both building and personal property while NFIP only provides coverage for building properties.

Building property coverage will reimburse you for flood damage to your home’s structure, up to the limit of your policy. This includes protection on structural framework and appliances such as refrigerators and stoves.

Get coverage for your personal belongings with the help of a flood insurance policy. This includes furniture, appliances and clothes to name just a few items that are covered in this type of plan. However, if you have valuable artwork or furs then make sure they’re not restricted by individual limits set at $2,500 on an NFIP policy.

Private flood insurers are often the best option for homeowners with a lot to lose. They offer higher limits and greater coverage than NFIP policies, so you can rest easy knowing that all your possessions will be covered in an emergency situation when need arises.

Do I Need Flood Insurance?

In the wake of Hurricane Harvey, storm-related floods were a major issue for homeowners. Many people were unaware that their home insurance policy would not cover flood damage. This was because they hadn’t purchased additional coverage from FEMA’s National Flood Insurance Program (NFIP). The NFIP has been around since 1968 and offers affordable rates to those who buy in bulk or whose lender requires it.

Let’s put it this way, floods are potentially the most common natural disaster in America. It doesn’t take a genius to figure out that they can happen anywhere from coastlines all the way inland and into farmlands of various states across our nation. If you live close to any body of water or if your neighborhood has ever been hit by flooding before then I recommend getting flood insurance now because FEMA (Federal Emergency Management Agency) says these things have become more frequent over time meaning we could be seeing even worse events soon with climate change on top!

You’ve just bought a new house, and it’s your dream home. You move in with your family to start renovating the place into something that feels like home. But then, disaster strikes: you suffer major flooding damage from an unusual storm. Luckily for you, you had flood insurance when this happened! So now, with the help of FEMA’s Preferred Risk Policy which offers premium discounts on coverage up to 50% off to those living in low-to-moderate risk zones (such as yours), not only are you getting back where your life was before the flood but also saving money each year.

Are Homeowners Covered Against Flood Damage?

The flood insurance policy may not be as popular as the home insurance, but it is still necessary for people living in high-risk areas. Basically, it protects homeowners financially and physically by covering damages that would have been caused from a natural disaster like flooding. The National Flood Insurance Program ensures that residents are able to protect themselves with this type of protection so they can get back on their feet after an unfortunate incident.

Your house is a safe place to be, but that doesn’t mean it can’t flood. Nationwide, almost 90% of home insurance policies are for homeowner’s coverage and only 6% have an NFIP flood policy on them in case the worst happens.

The ratio of flood insurance coverage varies by state. Residents in coastal states tend to buy their policies with higher numbers than inland areas, and this is reflected on the list of high-ratio vs low-ratios.

Least Insured StatesMost Insured States
47. Ohio (0.8%)1. Louisiana (40.3%)
48. Michigan (0.7%)2. Florida (31.4%)
49. Wisconsin (0.7%)3. Hawaii (20.8%)
50. Minnesota (0.6%)4. South Carolina (14.5%)
51. Utah (0.5%)5. Texas (12.1%)

I love data. It is so calming to see statistics collected neatly in rows and columns on a table, like the FEMA flood premium analysis shown below.

StateOwner Occupied Housing UnitsResidential Policies in ForcePercent of Homes Insured
Alabama1305223484133.70%
Alaska16327219651.20%
Arizona1742670258351.50%
Arkansas761809122731.60%
California72187421901882.60%
Colorado1471912172431.20%
Connecticut895594306223.40%
Delaware264503251779.50%
District of Columbia12098819491.60%
Florida5237519164458931.40%
Georgia2470572767343.10%
Hawaii2799605836720.80%
Idaho46938753961.10%
Illinois3211867328731.00%
Indiana1800483173201.00%
Iowa90788098381.10%
Kansas75656675031.00%
Kentucky1171824163871.40%
Louisiana115765246686540.30%
Maine41411968821.70%
Maryland1488168618034.20%
Massachusetts1647747529383.20%
Michigan2841195191780.70%
Minnesota159839693950.60%
Mississippi740651552957.50%
Missouri1650019149670.90%
Montana30145639551.30%
Nebraska51137074221.50%
Nevada64751895371.50%
New Hampshire38416667601.80%
New Jersey20817982017349.70%
New Mexico540052101461.90%
New York39855161571223.90%
North Carolina26427091330595.00%
North Dakota198411123766.20%
Ohio3123733243920.80%
Oklahoma979898105611.10%
Oregon1037125222242.10%
Pennsylvania3501824429421.20%
Rhode Island251146107194.30%
South Carolina138849220104014.50%
South Dakota23993131691.30%
Tennessee1765720235881.30%
Texas617927875005512.10%
Utah72328834410.50%
Vermont18625226371.40%
Virginia2110713980404.60%
Washington1849692289011.60%
West Virginia534568109762.10%
Wisconsin1603906113640.70%
Wyoming16758215140.90%

The NFIP’s latest release was published in November 2020. The data I received from the National Flood Insurance Program can be broken down by state and flood zone, which is important to note because we are trying to get an accurate representation of all aspects that affect flooding risks. For my analysis of U.S. flood insurance costs, I referred to these breakdowns as well as most recently available rate information for private insurers’ premiums on properties in each FEMA-designated zones 1 through 3 (from Florida, Texas and New Jersey).

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