According to FEMA, floods are the most common natural disaster. That makes it all the more surprising that most homeowners don’t have flood insurance.
That may be because many people believe their homeowner’s insurance covers flooding. It might also be because lenders only require flood insurance for homes located in high-risk zones.
Even if your home is outside a high-risk zone, it’s still a good idea to have flood insurance. How much is flood insurance though? The answer depends on a few factors.
How Much Is Flood Insurance on Average?
The US national average for flood insurance is around $700. You can pay a lot more or a lot less, depending on several different factors.
One of the biggest factors is where you live. Some of the most flood-prone states, like Louisiana and Texas, have a very low flood insurance cost. Florida is actually the cheapest state.
Another factor is where your house is located. Even in a low-cost state like Florida, your flood insurance quote will be much higher if you’re in a high-risk zone. Low-risk zones will pay less in insurance, because it’s less likely a flood will happen.
Discover Your Home’s Risk
Before you buy a home, you can discover where it is on the flood plain. This site has a map of Indiana’s flood plains, along with rates.
Homes located in high-risk zones are more likely to flood. Insurance will cost more for these homes than those located in lower-risk areas.
It’s important to remember homes located in low-risk zones can and do flood. FEMA estimates around a quarter to a third of flood claims are for dwellings in low-risk zones every year.
Keep in mind that you can get flood insurance even if your home has flooded before. It’s a good idea to have flood insurance in place before a flood happens, if at all possible. Knowing your home’s risk can help.
What Does Flood Insurance Cover?
The other significant factor in the cost of flood insurance is coverage. The more your insurance covers, the higher the price is likely to be.
The National Flood Insurance Program, or NFIP, provides affordable coverage for most flooding. It’s available through many companies, and can cover any dwelling or structure up to a certain amount.
If your home is worth more than NFIP’s maximums, it’s a good idea to consider private coverage. You may need to supplement NFIP coverage with private insurance. You may even prefer to go entirely with a private insurer.
A private insurance policy may have a different definition of what counts as a flood. They may provide coverage in more situations. Be sure to review deductibles and other out-of-pocket costs before you sign up for any policy.
NFIP does not cover wind-driven rain damage. Most homeowners’ policies cover this kind of damage instead.
Get Peace of Mind with the Right Insurance
The answer to “how much is flood insurance?” is dependent on many factors. In most cases, though, you can’t afford not to have it. Check in with a local insurance provider to get a specific quote for your property.
Looking for more tips on how to protect your investment in your property? We have plenty of how-to guides and tips to help you make the most of your property.