The Cost of Flood Insurance: Is It Worth It?

Flood Insurance Visualized

A staggering 90% of all cases and types of natural disasters in the US are water-related. Flooding tops the list, accounting for almost half of all these disasters from 1995 to 2015.

In 2018 alone, flood damage led to the National Flood Insurance Program paying out $1.35 billion in claims. During that time, the NFIP paid an average of $42,580 per claim.

All these shows us how the cost of flood insurance could be a necessary expense.

The big question now is, how much is flood insurance? Should everyone be getting it in the first place?

That’s exactly what we’ll address in this post, so make sure you read on!

The Average Cost of Flood Insurance

How much a flood insurance policy will cost you depends on where exactly your home is on the flood maps. These are maps that show which areas of the US are in floodplains, hazard areas, and risk zones. The closer your home is to these spots, the higher the risk of your area getting flooded.

Hence, the higher you can expect your flood insurance premiums to be.

However, other factors, like the age of your home and how many floors it has will also influence its cost. The contents of your home and where exactly these items are will also impact your premiums.

Just to give you an idea though, the average flood insurance costs about $700 a year.

What Flood Insurance Covers

Flood insurance provides coverage for direct flood damage and losses. Building coverage includes damages sustained by the actual structure of your home. Contents coverage protects your belongings that get damaged or lost during a flood.

These two are usually separate, although private insurers offer policies that combine them.

Gauging the Worth of Flood Insurance

If your home is in a low to moderate flood risk area, you’re likely wondering “Should I still get flood insurance?”

Yes, you should, seeing as 25% to 35% of flood claims come from property owners within these areas. This means that your home still has at least a one-in-four chance of getting flooded, even if it’s in a low-risk area!

Now, compare that $700 a year to the potential losses and expenses you may suffer after a flood. Professional flood repair and cleanup alone can already set you back around $1,000 to $4,000.

That’s on top of all the water damaged building materials you may need to fix or repair. Don’t forget all the furniture, electronics, and appliances that may also get hit by the flood.

Without flood insurance, you’ll pay for all these repairs and replacements on your own.

All these should tell you that the answer to your question, “Do I need flood insurance?” is no doubt a big yes.

Don’t Let a Flood Leave You Without a Home

There you have it, a brief, but spot-on explanation of why the cost of flood insurance is worth it. Even if it’ll cost you more than $700 a year, that’s still a lot less than what you’d otherwise pay if you weren’t insured. Besides, you don’t have to cough up the entire cost in one go — you can pay it in monthly installments.

Ready for more lie pro tips to make your home safer and better protected? Then be sure to head over to and check out the other posts under this site’s Frugal Living and Family Life sections!

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