How Much Does Flood Insurance Cost? Everything You Need to Know

Floods are the most common natural disaster in the United States. And they can be devastating: Just an inch or two of water damage can cause more than $25,000 in repairs and lost property.

Flood insurance is unique because most policies are sold and backed by the federal government. (Homeowners insurance generally doesn’t cover flood damage.)

But that valuable protection comes at a cost, roughly $752 on average nationwide in 2022. Many policyholders have seen their flood insurance premiums rise following a FEMA risk rating system rolled out in December 2021.

Here’s how much flood insurance costs now along with ways to save money in the future.

What Is Flood Insurance?

Flood insurance is a type of property insurance that covers a home or business against water damage caused by flooding. Standard home insurance doesn’t cover that kind of damage.

Flood insurance is available in over 24,000 communities across the US It’s required for homes with government-backed mortgages that sit in areas deemed “high-risk” by the Federal Emergency Management Agency (FEMA).

Many banks also require flood insurance in high-risk zones.

Coverage is primarily issued by the National Flood Insurance Program (NFIP), which works with more than 50 insurers to sell its policies. Private companies also sell flood insurance, though these policies make up just a small fraction of the overall flood insurance industry.

How Much Does Flood Insurance Cost?

The average cost of flood insurance from the National Flood Insurance Program is roughly $752 a year, or about $63 a month.

Your specific flood insurance cost will depend on many factors, including your home’s location, size and elevation.

For example, if you live in a high-risk flood hazard area — like zones A, AE or AO — your flood insurance rates will be much higher than a homeowner living in a lower-risk area.

Average Flood Insurance Costs by State

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