The Federal Emergency Management Agency (FEMA) estimates that the average annual cost of a flood insurance policy is around $888. These two tables show how that rate differs significantly by state.
The location and flood risk of your property, the kind of construction, the number of stories, the kind of coverage, and the deductible amount you choose will all affect how much your premiums will cost.
If you own a property in a flood area designated by FEMA and have a mortgage on it, you could have to pay the annual payments for your flood insurance up front.
Ninety percent of flood policies in the United States are underwritten by the National Flood Insurance Program; however, its policies have some restrictions. They have a $100,000 cap on personal property coverage and a $250,000 cap on dwelling coverage.
Moreover, insurance funded by the NFIP does not cover exterior construction and goods like decks, patios, fences, swimming pools, and septic systems.
Policies from the NFIP also restrict coverage in basements. Personal possessions and finished basement modifications are not protected, although basic structural components and necessary equipment (such as heaters and sump pumps) are.
Furthermore, damage not covered by flood insurance is damage resulting from clogged sewers or drains. Water backup coverage would be required by your homeowner’s policy.
Furthermore, NFIP-backed insurance does not pay for your living expenses if you are forced to move while flooding-related damage is being repaired.