The average cost of flood insurance through the National Flood Insurance Program (NFIP) is $771 a year, or $64 a month.

Since homeowners insurance does not cover flood damage to your home or belongings, flood insurance can provide valuable financial protection. Lenders usually require it for mortgages on homes in high-risk flood zones. It’s also worth considering in many situations when it’s not lender-required.

Most flood insurance is issued by the NFIP, which is managed by the Federal Emergency Management Agency (FEMA), but private companies also offer flood insurance in many states.

Here is a closer look at the estimated costs of NFIP flood insurance in each state and how Risk Rating 2.0, the new process for setting flood insurance premiums, may increase or reduce the amount you pay.

In this article:

How much does flood insurance cost in my state?

The average cost of flood insurance ranges from $52 a month in Florida to $138 a month in Vermont.

NFIP flood insurance rates by state
State Annual Monthly % of homes with flood insurance
Alabama $743 $62 3.2%
Alaska $931 $78 1.0%
Arizona $778 $65 1.2%
Arkansas $977 $81 1.4%
California $916 $76 2.4%
Colorado $1,004 $84 1.1%
Connecticut $1,504 $125 3.1%
Delaware $751 $63 8.1%
District of Columbia $850 $71 1.5%
Florida $628 $52 25.6%
Georgia $740 $62 2.7%
Hawaii $679 $57 18.0%
Idaho $820 $68 1.0%
Illinois $1,132 $94 1.0%
Indiana $1,165 $97 0.9%
Iowa $1,207 $101 1.1%
Kansas $1,059 $88 0.9%
Kentucky $1,191 $99 1.3%
Louisiana $752 $63 35.4%
Maine $1,138 $95 0.5%
Maryland $633 $53 3.8%
Massachusetts $1,317 $110 2.9%
Michigan $1,074 $90 0.6%
Minnesota $1,024 $85 0.4%
Mississippi $852 $71 6.4%
Missouri $1,264 $105 0.9%
Montana $908 $76 1.1%
Nebraska $1,080 $90 1.4%
Nevada $813 $68 1.3%
New Hampshire $1,116 $93 1.6%
New Jersey $963 $80 8.8%
New Mexico $974 $81 1.6%
New York $1,270 $106 3.6%
North Carolina $754 $63 4.3%
North Dakota $850 $71 3.2%
Ohio $1,248 $104 0.7%
Oklahoma $999 $83 0.9%
Oregon $982 $82 2.1%
Pennsylvania $1,407 $117 1.2%
Rhode Island $1,458 $122 3.7%
South Carolina $632 $53 11.9%
South Dakota $1,131 $94 1.0%
Tennessee $996 $83 1.3%
Texas $676 $56 10.7%
Utah $757 $63 0.5%
Vermont $1,652 $138 1.3%
Virginia $807 $67 4.1%
Washington $1,001 $83 1.5%
West Virginia $1,355 $113 1.8%
Wisconsin $1,076 $90 0.6%
Wyoming $1,095 $91 0.8%
National average $771 $64 5.2%
Sources: FEMA, U.S. Census Bureau

Cheapest states for flood insurance

Florida has the cheapest rates on flood insurance, $52 a month, which is slightly less than it costs in South Carolina, $53 a month, and Maryland, also $53 a month.

States with the cheapest flood insurance
State Annual Monthly
Florida $628 $52
South Carolina $632 $53
Maryland $633 $53
Texas $676 $56
Hawaii $679 $57
National average $771 $64
Source: FEMA

Most expensive states for flood insurance

Vermont has the most expensive flood insurance, $138 a month, followed by Connecticut, $125 a month, and Rhode Island, $122 a month.

States with the most expensive flood insurance
State Annual Monthly
Vermont $1,652 $138
Connecticut $1,504 $125
Rhode Island $1,458 $122
Pennsylvania $1,407 $117
West Virginia $1,355 $113
National average $771 $64
Source: FEMA

Understanding Risk Rating 2.0 — FEMA’s new flood insurance rules

Image of flooded house

FEMA recently changed the way flood insurance is priced. On Oct. 1, 2021, the agency rolled out the first phase of Risk Rating 2.0, which was designed to bring more equitable pricing to flood insurance.

Under Risk Rating 2.0, the cost of flood insurance is primarily based on the cost of replacing a home and each property's unique flood risk.

FEMA's Risk Rating 2.0

Risk Rating 2.0 will use five main variables to determine a property’s flood risk:

  • Historical flood frequency
  • Flood type: river, rainfall, coastal surge, coastal erosion
  • Distance to water source
  • Property characteristics: elevation, soil, etc.
  • Cost to rebuild

Risk Rating 2.0 is changing the amounts that millions of Americans pay for flood insurance. More than five million people are currently insured through the NFIP. Nearly 80% of these policyholders will pay $10 to $100 more a month as their policies renew.

Around 1.2 million policyholders will immediately see a rate decrease of between $10 and $100 a month.

Our research shows that, for the most part, property owners in lower-value homes and neighborhoods will pay less under Risk Rating 2.0, while property owners in higher-value homes and neighborhoods will pay more.

How Risk Rating 2.0 will affect each state
State % of policies with an increase % of policies with a decrease % of policies that will increase by $20 or more % of policies that will decrease by $20 or more % of policies that will increase by $60 or more % of policies that will decrease by $60 or more Total policies affected
Alabama 79% 21% 3% 9% 0.2% 6% 52,648
Alaska 14% 86% 1% 47% 0.1% 21% 2,250
Arizona 75% 25% 2% 16% 0.1% 9% 29,261
Arkansas 67% 33% 4% 23% 0.2% 13% 14,397
California 73% 27% 4% 16% 0.1% 9% 214,829
Colorado 57% 43% 4% 20% 0.2% 12% 19,983
Connecticut 63% 37% 9% 26% 0.7% 17% 34,828
Delaware 62% 38% 2% 16% 0.1% 7% 26,147
Florida 80% 20% 4% 5% 0.2% 2% 1,727,811
Georgia 76% 24% 2% 11% 0.1% 7% 81,998
Hawaii 87% 13% 4% 7% 0.3% 5% 61,382
Idaho 72% 28% 3% 16% 0.1% 9% 5,645
Illinois 58% 42% 4% 28% 0.4% 16% 37,677
Indiana 54% 46% 3% 32% 0.1% 19% 20,081
Iowa 63% 37% 6% 24% 0.7% 14% 12,637
Kansas 62% 38% 3% 24% 0.2% 14% 9,565
Kentucky 71% 29% 6% 19% 0.5% 10% 19,361
Louisiana 80% 20% 3% 12% 0.1% 7% 495,923
Maine 66% 34% 9% 16% 0.8% 11% 7,746
Maryland 39% 61% 1% 15% 0.1% 8% 64,942
Massachusetts 61% 39% 6% 24% 0.5% 16% 58,501
Michigan 46% 54% 1% 34% 0.1% 21% 20,481
Minnesota 71% 29% 3% 15% 0.2% 10% 10,541
Mississippi 84% 16% 4% 11% 0.3% 6% 61,317
Missouri 70% 30% 7% 19% 0.7% 12% 19,706
Montana 63% 37% 2% 21% 0.1% 13% 4,339
Nebraska 57% 43% 7% 32% 0.2% 19% 9,129
Nevada 79% 21% 3% 14% 0.3% 9% 10,586
New Hampshire 65% 35% 7% 22% 0.5% 10% 7,747
New Jersey 79% 21% 5% 13% 0.4% 8% 217,178
New Mexico 64% 36% 2% 25% 0.1% 13% 11,556
New York 68% 32% 7% 18% 0.5% 13% 171,099
North Carolina 74% 26% 3% 12% 0.2% 8% 139,842
North Dakota 62% 38% 1% 15% 0.1% 7% 13,161
Ohio 55% 45% 4% 28% 0.4% 18% 29,044
Oklahoma 70% 30% 4% 20% 0.1% 12% 13,024
Oregon 70% 30% 4% 17% 0.2% 11% 24,850
Pennsylvania 70% 30% 7% 19% 0.8% 13% 51,555
Rhode Island 54% 46% 3% 29% 0.3% 22% 12,001
South Carolina 74% 26% 3% 10% 0.2% 5% 208,559
South Dakota 69% 31% 4% 21% 0.2% 15% 3,743
Tennessee 72% 28% 5% 15% 0.4% 9% 27,507
Texas 86% 14% 3% 8% 0.1% 4% 768,537
Utah 47% 53% 1% 18% 0.1% 10% 3,755
Vermont 67% 33% 8% 23% 1.0% 17% 3,330
Virginia 55% 45% 2% 17% 0.1% 9% 104,781
Washington 67% 33% 4% 20% 0.2% 12% 32,547
West Virginia 83% 17% 8% 13% 1.0% 8% 13,337
Wisconsin 56% 44% 2% 27% 0.1% 17% 12,949
Wyoming 67% 33% 3% 22% 0.2% 15% 1,705
United States 77% 23% 4% 11% 0.2% 6% 5,017,534
Source: FEMA

Our analysts also found that Hawaii, Texas and Mississippi have the highest percentages of policyholders who will see a price increase as the new rating system takes effect. Meanwhile, more than 50% of policyholders in Alaska, Michigan, Maryland and Utah will see their rates drop.

West Virginia, Maine and Connecticut have the largest percentages of policyholders who will see a price decrease of $20 or more, while Rhode Island has the largest percentage of policyholders who will experience a price decrease of $60 or more.

Florida has the largest number of policyholders that will see a major change. Nearly 22,000 Floridians will see the cost of their flood insurance drop by $100 or more, and 1,200 policyholders will see it increase by $100 or more.

Risk Rating 2.0 went into effect for new policyholders on Oct. 1, 2021, and on renewals for existing policyholders beginning April 1, 2022.

What does flood insurance cover and do I need it?

NFIP flood insurance policies offer up to $250,000 in building coverage and up to $100,000 in contents coverage.

Building coverage pays to repair structural damage to your home, and contents coverage pays to repair or replace belongings such as furniture, electronics, clothing and certain types of appliances. If you’re a renter, you can purchase a contents-only flood insurance policy.

If you have a mortgage on a home in a high-risk flood zone, as determined by FEMA’s extensive mapping system, your lender will probably require flood insurance.

If you don’t have a mortgage or your home is in a low- or moderate-risk flood zone, you can still purchase flood insurance on an optional basis, as long as your community participates in the NFIP. Most communities do.

Along with providing flood insurance, the NFIP works with communities to develop land-use policies and building codes that reduce flood risks.

If you are wondering why you should consider flood insurance if your lender does not require it, here are three statistics that FEMA frequently cites to answer this very question:

  • One inch of flood water can cause up to $25,000 in damage to a home.
  • The average cost of a flood insurance claim is approximately $30,000.
  • More than 25% of NFIP flood insurance claims come from outside high-risk flood zones.

How does my flood zone impact my flood insurance rates?

Homes located in Special Flood Hazard Areas (SFHAs) have the highest flood insurance rates, while those in moderate- and low-risk zones usually qualify for considerably lower rates.

FEMA’s flood zone maps, which you can find in the Map Service Center on the agency’s website, have several different codes. Any zone beginning with the letter A or V, such as AE or V1, is an SFHA. Zones beginning with the letters B, C or X are low- and moderate-risk areas.

Our analysis shows that NFIP flood insurance for homes in low- and moderate-risk areas is 45% less than it is for homes in SFHAs.

Flood insurance costs by zone
Flood zones Annual flood insurance rate
All A and V zones (SFHAs) $970
Moderate to low flood hazard areas $537
Source: FEMA

How does private flood insurance work?

Where available, private flood insurance can often be purchased as either an alternative to NFIP flood insurance or as enhanced coverage to add to an NFIP policy. 

Here are a few potential advantages of private flood insurance over an NFIP policy:

  • You can sometimes get a better rate from a private flood insurance policy than you can on one issued through the NFIP.
  • Some private flood insurance providers offer higher coverage limits than the NFIP, which can prove valuable if the replacement cost value of your home is more than $250,000 or your personal items are worth more than $100,000.
  • Some private flood insurance companies often offer loss of use coverage, which pays for temporary living expenses while your home is being repaired. NFIP flood insurance does not include loss of use.

Frequently asked questions about the cost of flood insurance

How much does flood insurance cost?

The average cost of flood insurance through the federally backed National Flood Insurance Program is $771 a year, or $64 a month.

What is replacement cost value in flood insurance?

Replacement cost value in flood insurance is the estimated price of repairing or rebuilding your home to like-new conditions. Replacement cost reflects the price of building materials and labor. It’s usually lower than your home’s market value, which includes your land, but more than actual cash value, which factors in depreciation.

How much does flood insurance cost in Zone AE?

As of March 31, 2022, the average cost of flood insurance in Zone AE was $971, according to FEMA. All zones that begin with the letters A or V are considered Special Flood Hazard Areas (SFHAs).

Methodology

We sourced our data from FEMA and the U.S. Census Bureau. The average costs of NFIP flood insurance are based on policies in force as of March 31, 2022. We obtained demographic data from the Census Bureau to calculate the percentage of homes with flood insurance in each state.

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