How much does flood insurance cost?

The median cost of a flood insurance policy for a single-family home in the U.S. is $789 per year, according to FEMA’s National Flood Insurance Program (NFIP). However, the average cost doesn’t always indicate what you’ll pay for coverage. 

In general, the cost of flood insurance will depend on several factors, including your property, associated risks, and how much coverage you need. Your costs will also depend on whether you purchase coverage through FEMA’s National Flood Insurance Program (NFIP) or a private carrier. 

Flood insurance costs by state

Flood insurance costs vary by where you live, even down to the ZIP code. States prone to flooding, tropical storms, or hurricanes generally have higher rates. The table below shows the average cost of coverage for flood policies purchased through the NFIP, the most common option for many homeowners. 

NFIP median flood insurance costs by state

^{Source: NFIP, August 2023}

Factors that affect flood insurance cost

The location of your property, the type of coverage you purchase, and the details of your home will largely determine the cost of your flood insurance policy. 

Flood risk

Depending on its location, your property may fall into one of three NFIP-defined flood risk ratings: lower, moderate, or high.

• Lower. Your home is located in an area with lower but still "meaningful" flood risk.

• Moderate. Areas that experience shallow flooding or have a reduced risk through mitigation efforts, such as levees. 

• High. Special, high-risk flood hazard areas, including coastal areas with a higher risk due to storm waves. If your property is located in one of these areas, you have a federally backed mortgage, and your community participates in NFIP, flood insurance is mandatory. 

To determine if your home is in a flood zone and identify the risk category, visit Floodsmart.gov and enter your home’s zip code. 

Characteristics of your home

Your property’s specific details and features will further determine your costs. Defining characteristics may include:

• The year your home was built

• Whether your property complies with local ordinances

• If it is your primary residence

• The elevation of your lowest floor

• Location of key systems, such as heating and cooling systems, electrical panels, and water heaters. 

Coverage details

The specific terms of your policy will influence how much you pay for flood insurance. This includes: 

• Coverage type. You can typically purchase coverage for the structure of your home, the contents of your home, or both. The more robust your policy, the higher your premium will be.

• Deductible selected. Higher deductibles typically result in lower premiums. Lower deductibles result in higher premiums, although your out-of-pocket expenses after a claim will be lower.  

• Policy provider. You can purchase coverage through NFIP or a private flood insurance carrier, with each provider offering different rates, levels of coverage, and deductibles. 

Tip: If you buy a flood insurance policy from the NFIP and the coverage limit is lower than the potential cost of rebuilding your home, you can purchase supplemental coverage called excess flood insurance.

How to lower your flood insurance cost

You may not be able to avoid flood insurance, but there are several steps you can take to reduce how much you pay for coverage. 

Lower your flood risk

Insurers set rates based on risk, but even if your property is in a designated flood zone, there are ways you can reduce the risk of flood-related damages and claims. Consider taking the following steps:

• Elevate your utilities. Placing your heating and cooling system, water heater, electrical panel, and other utilities above the base flood elevation may make you eligible for a premium discount.

• Install flood openings. Also known as flood ports or flood vents, these openings allow water to move freely in and out of the house, reducing structural damage during a flood event. In some cases, NFIP requires flood openings for new construction or substantial renovations; however, they can also be installed in older homes. 

• Fill in your basement. If you currently have a basement and live in a high-risk area, filling it in may lead to lower insurance costs. In most cases, the NFIP prohibits and does not cover basements in new constructions in high-risk areas.

• Elevate your property. Homes elevated off the ground are often eligible for discounts, with reductions increasing for every foot above ground the property is elevated. According to the NFIP, elevating your home even one foot above the ground can result in a 30% discount on your flood insurance premiums. 

Choose a higher deductible

You can lower your insurance premiums by choosing a higher deductible, or the amount your insurer will subtract from a claim payout. Deductible options vary, typically ranging from $1,000 to $10,000.

A higher deductible will lead to lower premiums, though you’ll need to pay more out of pocket after a claim. Lower deductibles may slightly increase your premium, but your financial obligations will be lower after a claim.   

Generally, you can purchase flood insurance policies that include coverage for the structure of your home, the contents of your home, or a combination of both. In instances where you purchase both, each will have a separate deductible.   

Provide an elevation certificate

An elevation certificate (EC) provides proof that your property meets local flood safety requirements. Contact your local floodplain manager – they usually work for your city’s or county’s building, permitting, engineering, or land use department – and ask if there’s an elevation certificate on file for your property.

In some cases, providing your insurer with an EC can result in lower premiums. Speak to your flood insurance agent to determine if you need or could benefit from providing an EC. 

Encourage your community to mitigate flood risk

Communities enrolled in NFIP’s Community Rating System (CRS) may be eligible for flood insurance discounts. This discount is determined by the community’s efforts to reduce the risk of flooding. 

Your insurance agent can help you find out if you’re eligible for a CRS discount or how to encourage your community to enroll in the program.

Do I need flood insurance?

If you live in a high-risk flood area, you should purchase flood insurance – it may even be mandatory depending on where you live and if you financed your home. However, even if your house is located in a low-to-moderate-risk area, getting a flood insurance policy is worth considering – 40% of all flood claims come from properties in those areas, according to the NFIP.

If you are considering flood insurance, speak with your homeowners insurance agent. They’ll be able to identify the right coverage options for your particular situation.