≡ Menu

How Much Does FEMA Flood Insurance Cost?

Around 4.3 million homes in the US are at a substantial risk of being damaged due to flooding this year. Extreme weather and rising sea levels are only expected to make this risk increase even more for additional homes in the coming years.

However, there is a way to protect yourself from the financial concerns caused by flooding: flood insurance. Though you may be concerned about the cost of FEMA flood insurance, the peace of mind it gives you is worth it. Let’s take a look at how much you can expect to pay.

What Determines the Cost of FEMA Flood Insurance?

The Federal Emergency Management Agency (FEMA) manages the National Flood Insurance Program (NFIP). You can then purchase this insurance through a network of insurance companies or through NFIP Direct.

No matter how you purchase your flood insurance, the premium will be determined by a few things. 

One factor is your location and the flood risk that comes with it. A FEMA flood insurance rate map would show that flood insurance is more expensive in the northeast and midwest, yet lower in the south. 

For example, a policy averages about $592 per year in Florida but averages $1,294 in Massachusetts. The distance from the water to your home can also affect your price.

Whether you choose to purchase insurance from a private company or the NFIP can also affect your price. Finally, the level of coverage that you choose will play into your premium. Higher coverage limits usually mean higher premiums, but also offer more protection. 

How to Get a Good Price on Flood Insurance

If you want to get the best FEMA flood insurance rates you can, you’ll need to shop around. You can get a FEMA flood insurance quote from multiple providers, then compare the costs and coverages that come with the policy.

You can also get a quote for cheap flood insurance near me to make sure you are getting the best price. They can also check your policy to make sure you are taking full advantage of the coverages you can get.

Why You Need Flood Insurance

Homeowners’ insurance policies don’t cover losses due to floods. So if you want to fully protect your home, you need to purchase a flood insurance policy separately.

A flood insurance policy will cover your home and belongings in the event they are damaged in a flood. Your policy limits will determine how much your policy will cover. 

Some homeowners and business owners are actually required to carry flood insurance. People who live in special hazard areas that also have a federally backed mortgage are required to have FEMA approved flood insurance. 

Even if you are not required to have flood insurance, you should consider having it. Floods do occur even in areas where they are not frequent and can cause disastrous damage to your home and belongings, potentially creating a financial hardship. 

Protect Your Home

Flood insurance is important and possibly even required if you live in a flood-prone area. However, even if FEMA flood insurance isn’t required, having the peace of mind that comes with protection from one of the most common natural disasters is worth it.

If you found this article helpful, be sure to check out our other real estate articles too.