The National Flood Insurance Program (NFIP) provides insurance to help reduce the socio-economic impact of floods. It is managed by FEMA and offered directly to the public through many insurance companies like FloodPrice.
What has changed with Risk Rating 2.0?
This new rating methodology began in October 2021. It is designed to assess the flood risk of an individual property more carefully, and in turn, adjust rates to reflect its flood risk more accurately. This new system replaced the NFIP’s practice of assessing flood risk based solely on flood zone and elevation.
They have incorporated more flood risk variables to determine a property’s flood risk, such as:
Flood Frequency
Multiple Flood Types (river overflow, storm surge, coastal erosion and heavy rainfall)
Distance to Water Source
Property Characteristics (such as elevation and cost to rebuild)
How will this impact pricing?
FEMA estimates that some policyholders will see a decrease, while 66% of policyholders could see an increase in premium pricing. In fact, 11% will see an average increase of more than $240 a year. Some homeowners face an 18% increase each year for the next 10 years or more!
Who is eligible for NFIP flood insurance?
You must live in a participating community to be eligible. If you have any questions about your eligibility for flood insurance through the NFIP, or a quote, give us a call at 866-503-5663.
Do I need Flood Insurance?
Flood insurance will likely be required by your lender if you live in a high-risk flood area. You can determine your flood zone by using our Flood Zone Lookup tool. As you search, look to determine the distance from your home to a flood zone. If there is a high-risk flood zone nearby, we recommend you obtain flood insurance.
When looking at your flood zone, bear in mind that many of the FEMA flood zone maps are outdated. Your home could still experience flood damage even if your home is not designated as being in a flood zone. For example, the uninsured homeowner flood loss from Hurricane Ian was estimated as much as $17 billion dollars.
Here are some flood facts to keep in mind when deciding if you should obtain flood insurance:
Almost any property can be at risk of flooding
Homeowners insurance does not typically cover flood damage
One inch of flood water is estimated to cause $25,000 in damage to a home
The average flood insurance claim is approximately $30,000
More than 25% of NFIP flood insurance claims come from outside high-risk FEMA flood zones
Federal disaster assistance comes in two forms: a loan, which must be paid back with interest, or a FEMA disaster grant (approx. $5,000 on average per household). The average flood insurance claim in 2018 was more than $40,000.
How much is flood insurance through the NFIP?
The average cost of flood insurance through the NFIP is $771 a year. This can vary widely depending on your deductibles, the cost of your home, and contents inside your home.
Where you live can play a role in determining the cost of flood insurance as well.
Below are the average prices by state.*
Alabama | $762.50 |
Alaska | $459.73 |
Arizona | $733.13 |
Arkansas | $870.53 |
California | $850.88 |
Colorado | $813.64 |
Connecticut | $1,305.11 |
Delaware | $701.11 |
Florida | $766.06 |
Georgia | $734.77 |
Hawaii | $704.99 |
Idaho | $851.43 |
Illinois | $915.08 |
Indiana | $899.08 |
Iowa | $1,105.36 |
Kansas | $903.84 |
Kentucky | $1,201.03 |
Louisiana | $814.42 |
Maine | $1,055.46 |
Maryland | $454.81 |
Massachusetts | $1,069.15 |
Michigan | $765.55 |
Minnesota | $919.03 |
Mississippi | $936.59 |
Missouri | $1,217.34 |
Montana | $838.32 |
Nebraska | $848.82 |
Nevada | $769.12 |
New Hampshire | $1,023.48 |
New Jersey | $920.39 |
New Mexico | $850.40 |
New York | $1,045.64 |
North Carolina | $745.37 |
North Dakota | $737.66 |
Ohio | $964.85 |
Oklahoma | $911.85 |
Oregon | $813.40 |
Pennsylvania | $1,249.94 |
Rhode Island | $963.04 |
South Carolina | $642.58 |
South Dakota | $995.90 |
Tennessee | $991.11 |
Texas | $783.08 |
Utah | $593.82 |
Vermont | $1,424.76 |
Virginia | $674.66 |
Washington | $873.52 |
West Virginia | $1,372.86 |
Wisconsin | $838.51 |
Wyoming | $867.61 |
*As of 01/31/2024. Averages may change.
How do I get a quote for flood insurance from the NFIP or Private Flood Insurance ?
Give us a call at 866-503-5663 and we will be happy to give you a quote for either and compare your options. We offer both NFIP flood insurance quotes and private flood insurance quotes! If you’re unsure which to purchase, we can quote both. To learn more about the difference, check out our article that explains the difference between NFIP vs Private Flood Insurance.
