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Average Cost of Flood Insurance by State
According to a recent Value Penguin analysis, the average cost of flood insurance in the U.S. hit $985 a year in 2022. Your premium could be higher or lower depending on a variety of factors including where you live, the size of your home as well as how close to a water source you are located.
Homeowners and renters can purchase flood insurance from either the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA) or in the private market.
Flood Insurance Rates by State
The cost of flood insurance can vary dramatically by state. According to Value Penguin, the average flood insurance rate by state varied by over $1,000 with a policy averaging only $613 in Florida while the average premium in Vermont clocked in at $1,648 which is 67 percent higher than the national average.
It should be noted that premiums can vary dramatically even within the same state depending on your homes risk factors.
Following is the average cost of flood insurance by state:
Average Cost Per Year
Compare Cost Per Year to National Average
|Colorado||$989||Close to Average, ($4)||0%|
|Connecticut||$1,496||More than average, loss of ($511)||52%|
|District of Columbia||$854||Save $131||-13%|
|Illinois||$1,135||Loss of ($150)||15%|
|Indiana||$1,147||Loss of ($162)||16%|
|Iowa||$1,199||Loss of ($214)||22%|
|Kansas||$1,033||Close to average, ($48)||5%|
|Kentucky||$1,150||Loss of ($165)||17%|
|Maine||$1,122||Loss of ($137)||14%|
|Massachusetts||$1,298||Loss of ($313)||32%|
|Michigan||$1,080||Loss of ($95)||10%|
|Minnesota||$1,002||Close to average, ($17)||2%|
|Missouri||$1,228||Loss of ($243)||25%|
|Nebraska||$1,080||Loss of ($95)||10%|
|New Hampshire||$1,075||Loss of ($90)||9%|
|New Jersey||$957||Close to average, savings of $28||-3%|
|New Mexico||$948||Close to average, savings of $37||-4%|
|New York||$1,266||Loss of ($281)||29%|
|North Carolina||$742||Save $243||-25%|
|North Dakota||$819||Save $166||-17%|
|Ohio||$1,211||Loss of ($226)||23%|
|Oklahoma||$973||Close to average cost, save $12||-1%|
|Pennsylvania||$1,370||Loss of ($385)||39%|
|Rhode Island||$1,427||Loss of ($442)||45%|
|South Carolina||$637||Save $348||-35%|
|South Dakota||$1,099||Loss of ($114)||12%|
|Tennessee||$978||Close to average cost, $7||-1%|
|Vermont||$1,648||Loss of ($663)||67%|
|West Virginia||$1,305||Loss of ($320)||32%|
|Wisconsin||$1,076||Loss of ($91)||9%|
|Wyoming||$1,067||Loss of ($82)||8%|
*Data shows a comparison of the savings associated with the cost of flood insurance when you take the national average and subtract it from the states average showing a savings or a loss.
*Data calculated by dividing each state's total written premiums by number of active flood insurance policies
States that have highest average premium for flood insurance
When it comes to the most expensive states in the country for flood insurance, the northeast is the big winner. According to Value Penguins data, Vermont is the most expensive state in the country for flood insurance with an average premium of $1,648 while Connecticut grabbed second place at $1,496. Rhode Island came in third with an average premium of $1,427.
Pennsylvania and West Virginia rounded out the top five. Most of the most expensive states for flood insurance were located in the Northeast while many of the locations for cheap flood insurance tend to be concentrated in the south.
States that have lowest average premium for flood insurance
On the flip side of the flood insurance coin are Florida, Maryland and South Carolina are the top three cheapest states for flood insurance. This is probably due to the fact that these states (particularly Florida and South Carolina) are known for severe weather and flooding which means more homeowners are carrying flood insurance, spreading the risk and lowering the cost.
Florida, which is the cheapest state for flood coverage is a bargain with an average rate of $613 a year according to Value Penguin data. Maryland was a tiny bit more expensive with an average premium of $630 while South Carolina came in at $637. Texas and Hawaii came in fourth and fifth, both states are known for severe weather.
Private flood insurance
While most flood insurance policies written in the U.S. are NFIP policies, it is also possible and sometimes necessary to purchase coverage in the private market. The largest private flood insurance company in the country is The Flood Insurance Agency (TFIA), they currently operate in 48 states.
While NFIP policies come with coverage caps, this is usually not an issue with private market policies. Depending on the cost to rebuild you home you may need both an NFIP policy and a private market policy to supplement the NFIP policy.
In the private market, rates are usually impacted by your home’s distance from a water source that could cause flooding. While private market flood insurance can be more expensive, it may be a necessity if NFIP policies are not available in your area or if the coverage levels are not high enough to cover your home.
What does flood insurance cover?
Flood insurance covers both your homes structure as well as your personal possessions. However, an NFIP policy requires two separate policies, one for the structure of your home and a separate policy for your possessions.
The policy that protects your home will cover damage done by flooding up to your coverage limits and will protect the structure of your home including the foundation, electrical and plumbing systems, HVAC systems as well as appliances. Coverage for a NFIP policy is capped at $250,000 so if it would cost more to rebuild your home you will need to purchase supplemental coverage in the private market.
Your personal possessions are covered by a separate policy with NFIP or a separate section of the policy if you are carrying private market coverage. This coverage will pay to replace your personal belongings if they are damaged or destroyed by flooding. This includes all your personal belongings such as clothes, furniture, tools, and even food that is lost.
It should be noted that a NFIP policy will cap personal possession coverage at $100,000 while private market policies typically offer much higher limits.
Should I carry flood insurance?
In most cases, it is up to you and how comfortable you are with the risk of flooding. In some situations, the decision will be made for you. If you have a mortgage on your home and it is located in a high-risk area for flooding, your lender will require that you carry flood insurance. In addition, any mortgages backed by the federal government are required to carry flood protection if the home is in a high-risk flood area.
Flooding is the most common natural disaster in the country according to FEMA so if you live in a high or even medium risk area you should absolutely consider flood insurance protection. FEMA data also shows that, approximately 25% of all flood insurance claims are made in low-to-moderate flood risk areas so if flooding is even a remote possibility you may want to consider coverage.
Does homeowners insurance cover flood damage?
A common misconception among homeowners is that their homeowners insurance covers flood damage. Almost all standard homeowner policies exclude flood damage so if you do not have a flood insurance policy in place, the cost to repair flood damage will fall to you.
While homeowners insurance is required for everyone that has a mortgage, flood insurance is only required for homeowners in specific high risk areas which means many homeowners are not protected against flood damage. According to FEMA, only 2.6% of homes in the country have an NFIP flood insurance policy protecting their home.The number of homeowners carrying flood coverage can vary dramatically by state with homeowners in coastal states buying more policies than more inland homeowners. According to Value Penguin data, the states with the most flood insurance policies are:”
- Louisiana (24.4%)
- Florida (17.7%)
- Hawaii (11.0%)
- South Carolina (8.8%)
- Texas (7.0%)
The states with the least amount of flood policies in force are:
- Minnesota (0.3%)
- Utah (0.3%)
- Wisconsin (0.4%)
- Ohio (0.5%)
Curious as to what percentage of homes in your state carry flood insurance? This chart from Value Penguin shows the percentage of homes in each state that have a flood insurance policy in place:
Total # of Homes
Homes with Flood Insurance
% of Homes Insured with Flood Coverage
|District of Columbia||322,793||2,049||0.60%|
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