This Is How Much Flood Insurance Costs

This Is How Much Flood Insurance Costs

Ninety-nine percent of counties in the United States have experienced flooding within the last twenty years. Almost no corner of the nation has been left untouched by the hazards and hefty costs flooding leaves in its wake.

With climate change causing sea levels to rise and glaciers to melt, flooding is only expected to become more common in the next 100 years. If you’ve been noticing the trends and wondering about the costs, you’re not alone.

Keep reading now to learn what you need to know about the prices of it.

How Much Does Flood Insurance Cost?

On average, flood insurance costs around $700 per year. That comes out to just below $60 per month.

The cost of it can vary, however. In some low-risk areas, annual costs can dip to around $550.

In high-risk areas like known flood plains or regions with a generally high cost of living, annual costs can be significantly higher. Connecticut homeowners, for example, can expect to pay around $1,400 a year for coverage.

That type of insurance is most expensive in:

  • Connecticut
  • Vermont
  • Rhode Island

It is least expensive in:

  • Florida
  • Maryland
  • Texas

Other Factors That Impact Cost

Your specific needs can also impact policy costs. For example, owners of particularly expensive vehicles, personal collections, and other pricey possessions like jewelry that may be damaged by flooding may need extra riders or waivers to fully protect their belongings.

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The type of building or property you need coverage for also matters. For example, your costs will likely vary depending on whether your home:

  • Is elevated
  • Includes a basement or crawlspace
  • Has enclosures such as porches

Isn’t Flood Insurance Covered by Homeowners Policies?

Many people assume that they do not need flood insurance because they have homeowners insurance or renters insurance. In reality, neither homeowners nor renters insurance policies typically cover flooding damage. If you are a renter, your landlord’s insurance will not cover flood damage to your belongings either.

Only this type of insurance covers flood damage, which is why it is so essential to purchase coverage for your home and belongings.

Putting Flood Insurance Costs in Perspective

The average insurance payout after a flood ranges from around $30,000 to more than $50,000. In severe instances, such as after Hurricane Katrina, flood damage to properties can average between $90,000 and $120,000.

At $700 per year, it is vastly cheaper to pay for flood insurance than to pay out-of-pocket for flood damage. Even at the highest national rates of more than $1,000 per year, it is still much less expensive to carry insurance than to be caught without it.

Where to Get Flood Insurance

Homeowners and renters can purchase such insurance through the National Flood Insurance Program (NFIP) or private insurance providers. Since rates and coverage can vary widely, experts recommend getting information from several different providers and comparing costs and benefits before choosing a policy.

More Information

Getting a handle on this insurance costs is only one of the many responsibilities that come with having your own place. Browse our home section for more great information on how to take care of and love living in your home today.

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