The Cost of Flood Insurance

If you look at your home insurance, you may notice flood damage is excluded — meaning your insurer will not pay for flood losses under a standard homeowners policy. To cover damage from storm surge, river overflow, or heavy rainfall-driven flooding, you need a separate flood policy through FEMA’s National Flood Insurance Program (NFIP) or a private flood insurer. See FEMA’s overview of what flood insurance covers here: FEMA — What’s covered.

Flood insurance is different from home insurance in that you typically buy it separately. Most households purchase through the NFIP, but private options have expanded and now account for roughly one-third of U.S. flood premiums by the early–mid 2020s, according to industry and regulator reports (NAIC CIPR; CRS R45242). Federally regulated lenders are required to accept qualifying private flood policies that meet the statutory definition under the 2019 interagency rule, which has supported private-market growth.

For many areas, flood insurance is a meaningful line item in the housing budget. Under FEMA’s modernized pricing, Risk Rating 2.0, premiums are property-specific and transition over time due to statutory caps on most renewal increases (generally up to 18%). Your total cost also includes NFIP fees such as the HFIAA surcharge (lower for primary residences and higher for non‑primary), the Federal Policy Fee, and the Reserve Fund Assessment; see FEMA’s cost components for current amounts and details. Communities that exceed minimum standards can earn CRS discounts of about 5%–45% on NFIP premiums. Climate trends are also raising baseline risks in many places — the latest U.S. climate assessment reports heavier downpours in most regions and projects 10–12 inches of average U.S. sea‑level rise by 2050, while NOAA recorded a record number of billion‑dollar disasters recently — adding urgency to mitigation and risk-based pricing (NCA5; NOAA NCEI).

Here’s what you need to know about the cost of flood insurance — including where to find up-to-date state and national averages published monthly by FEMA’s NFIP (Policy & Claim Statistics; OpenFEMA dataset). 

Average flood insurance cost by state

*For current NFIP averages by state and the U.S. overall, use FEMA’s monthly dashboard: Claim Information By State report, and the OpenFEMA dataset. Label the metric as “Average Written Premium per Policy (NFIP)” and include the “as of” month when you extract the data.

The most expensive states for flood insurance

The top ten most expensive states for flood insurance are:

1. Vermont: $1,447.04
2. Connecticut: $1,430.19
3. Rhode Island: $1,410.38
4. Massachusetts: $1,274.51
5. Pennsylvania: $1,214.42
6. New York: $1,178.15
7. West Virginia: $1,145.25
8. New Hampshire: $1,093.94
9. Missouri: $1,089.35
10. Maine: $1,086.60

The cheapest states for flood insurance

The top ten cheapest states for flood insurance are:

1. Florida: $563.06
2. Maryland: $584.10
3. Texas: $594.73
4. Utah: $638.31
5. Georgia: $661.36
6. Arizona: $665.51
7. North Dakota: $668.06
8. Louisiana: $672.85
9. South Carolina: $674.92
10. Hawaii: $676.40

Factors that determine flood insurance cost

There are a handful of specific variables that determine how much you’ll pay for flood insurance. Under FEMA’s Risk Rating 2.0 and common private‑market approaches, the most important drivers are:

• Location‑specific flood hazard: distance to water, local elevation/terrain, and expected flood type and depth (riverine, storm surge, heavy rainfall/pluvial).
• Building characteristics: first‑floor height/lowest floor, number of stories, foundation, presence of basement/enclosure, and compliant flood openings/vents; elevation of HVAC/mechanicals.
• Whether it’s your primary residence and how it’s used: occupancy can affect certain NFIP fees (e.g., HFIAA surcharge is lower for primary homes) and eligibility for replacement cost settlement.
• Your coverage limits and deductibles: higher limits and lower deductibles cost more; choosing a higher deductible can reduce premium but increases out‑of‑pocket risk (FEMA Flood Insurance Manual).
• Presence of a basement or enclosure below the elevated floor and the extent of finished space below the lowest elevated floor.
• Replacement cost value and, where applicable, prior NFIP claims history; higher‑value homes generally pay more for the same hazard.
• Communitywide credits: participation in FEMA’s Community Rating System can earn discounts of about 5%–45%.
• Statutory fees/surcharges added to the risk‑based rate: HFIAA surcharge, the Federal Policy Fee and Reserve Fund Assessment (NFIP), and any probation surcharge for noncompliant communities.
• Under RR2.0, map zones and Base Flood Elevations still matter for mandatory purchase and building codes, but they no longer directly set NFIP prices; rates are property‑specific.

To determine if your home is considered to be in a flood zone, input your address into Fema’s flood map. Also compare additional tools for a fuller risk picture: real‑time/event tools from NOAA’s National Water Prediction Service and USGS Flood Inundation Mapper; climate‑forward views via CMRA and nonprofit property‑level risk from First Street Foundation’s Risk Factor. Even outside high‑risk zones, consider your area’s flooding history via the National Weather Service. 

What does flood insurance cover?

Flood insurance covers your home’s structure and personal property. For NFIP policies, residential building limits are typically up to $250,000 and contents up to $100,000, with separate deductibles; non‑residential limits are higher. Claims are generally settled at replacement cost for qualifying primary, single‑family dwellings and at actual cash value for contents. Your flood policy also includes protection for your home’s:

• HVAC
• Electrical systems
• Plumbing systems
• Appliances

Most flood insurance policies come with caps for certain types of personal belongings. For example, under the NFIP Standard Flood Insurance Policy there is a $2,500 aggregate sublimit for items like jewelry, furs, and certain artwork/collectibles. If you need more coverage to protect high‑value items or want additional living expense coverage, compare private flood options. See FEMA’s Summary of Coverage and the SFIP in the eCFR. NFIP policies also include Increased Cost of Compliance (ICC) coverage up to $30,000 to help pay for code‑required elevation, relocation, demolition, or floodproofing after substantial damage.

Flood insurance does not cover the following:

• Earth movement
• Personal property outside of the home
• Cars
• Additional living expenses
• Financial losses because of business impacts
• Precious metals
• Currency
• Stock certificates
• Mold or mildew damage not attributed to the flood

How to lower your cost of flood insurance

You can lower the cost of flood insurance by: selecting higher deductibles (NFIP allows up to $10,000 for building and contents), verifying primary‑residence status (which affects the HFIAA surcharge), paying annually to avoid installment fees, and documenting mitigation so credits can be applied. Under Risk Rating 2.0, first‑floor height, compliant flood openings, and elevated utilities can materially reduce premiums; community participation in FEMA’s CRS can deliver 5%–45% discounts for all policyholders. Where available, compare NFIP with private flood insurers; private policies may offer higher limits or broader coverage at competitive prices in lower‑to‑moderate risk areas (NAIC CIPR).

1. Installing flood vents to release water after a flood event and reduce hydrostatic loads on enclosures below the elevated floor (often earning NFIP credits).
2. Filling in or reconfiguring crawl spaces/enclosures per code and adding compliant openings; minimizing enclosed space below the lowest elevated floor can lower risk‑based premiums.
3. Elevating your home above expected flood levels (adding freeboard) and documenting first‑floor height with an Elevation Certificate or survey; elevation also improves eligibility for ICC funds after substantial damage.
4. Moving your home to or chose a home in an area above the base flood elevation mark or otherwise farther from flood sources to reduce the underlying hazard used in pricing.
5. Moving your utilities— some homes have their utilities located in the basement or crawlspace. If possible, relocate them to a higher floor or elevate in place; this reduces damage and may lower premiums, especially under RR2.0’s property‑specific rating.