How are flood insurance premiums calculated?

Location and construction materials play a primary role in determining flood insurance premiums, but insurers may look at other factors.

A young couple stand on a flooded floor wearing rainboots while one calls their insurer

General factors that determine flood insurance premiums

Flood insurance is determined using many of the same factors used in determining a basic homeowners insurance policy. For example, premiums take into account the home’s:

  • Location.

  • Building materials.

  • Size.

  • Age.

As with home insurance, the coverage limits and deductibles you choose also impact your flood insurance premium.

The role of location in determining flood insurance premiums

While location is a key factor in your home insurance premium, it’s even more important for calculating flood costs. Homes near bodies of water like ponds, lakes, rivers, and ocean generally cost more to insure for flooding than those located elsewhere. 

Location can play a significant role in other ways. Properties located in low-lying, flood-prone areas are seen as a higher risk and will typically have higher insurance premiums. That’s probably even more true for homes in recognized flood zones.

How to get flood insurance

Many homeowners get their flood coverage through the National Flood Insurance Program (NFIP), which is administered by FEMA and sold through local agencies. But private flood insurance is becoming more popular. Our members in Florida and Louisiana can get private flood insurance through Kin. 

You can get a free, no-obligation quote from us with an email or a phone call. Contact us to discuss your situation. We make homeowners insurance easy.


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