Flood insurance

How much does flood insurance cost?

Checked against FEMA and other official sources · Last reviewed October 8, 2026

What the average NFIP policy costs

FEMA publishes a "Policy Information by State" report with policy counts and premiums for every state and participating community. In the report with data as of September 30, 2026, the national totals are:

• 4,436,679 policies in force
• $4,478,754,638 in total written premium plus the federal policy fee
• $5,531,637,838 in total annual payment, which FEMA defines as "the sum of submitted written premium, discounts, fees, assessments and surcharges"

Dividing those totals by the number of policies gives about $1,009 in premium plus policy fee, or about $1,247 in total annual payment, per policy. That's our arithmetic, not a figure FEMA publishes. It's also an average over every NFIP policy in force, of every type, not just single-family homes. FEMA's report breaks the same figures down by state and community. See your state's page, such as Florida or Texas. [2]

How FEMA sets your premium (Risk Rating 2.0)

Since October 1, 2021, new NFIP policies have been priced under Risk Rating 2.0. Since April 1, 2022, renewing policies have been priced under it too. FEMA describes it as an individualized approach that uses more flood-risk variables. These include "flood frequency, multiple flood types—river overflow, storm surge, coastal erosion and heavy rainfall and distance to a water source along with property characteristics such as elevation and the cost to rebuild."

FloodSmart groups the premium factors into three parts:

• Where it's built. This includes distance to the coast, ocean, rivers, and Great Lakes; ground elevation compared with nearby land and water; and your community's Community Rating System discount.
• How it's built. This includes building use, foundation type (for example, slab on grade or basement), first floor height, number of floors, unit location, construction type, flood openings, and whether machinery and equipment are elevated.
• What's built and covered. This includes the building's replacement cost value, the building and contents coverage amounts you choose, and your deductibles.

Under Risk Rating 2.0, FEMA says the rating is specific to the building "rather than a blanket rate based on a flood map." Before that, FEMA's method "primarily considered flood zones and elevations." See flood zones for what the zones mean. FloodSmart says that if you live in a lower-risk area, "you'll pay less than someone who lives in a high-risk area for a comparable home." [1][3][4][5]

How much your premium can go up each year

By law, the rate for most properties "may not be increased by more than 18 percent each year." FEMA's Risk Rating 2.0 page says "most rates not increase more than 18% per year." FloodSmart's premium page puts the cap at "18–25% per year for most policyholders" and notes it "usually does not apply to new policies."

The difference comes from the law. Some properties are on a separate 25% yearly increase path. These include residences that aren't someone's primary residence, business properties, severe repetitive loss properties, and properties with substantial damage or improvement. The 18% limit also has exceptions. Examples include properties that were misrated, policies where you lowered the deductible or raised the coverage, and communities whose Community Rating System rating was downgraded.

Increases continue each year only until your premium reaches the full-risk rate. FEMA says policyholders whose premiums go down move to the lower rate right away at renewal. The cap shows up on your declarations page as an "Annual Increase Cap Discount," and FEMA warns it "won't apply to your next policy term if your policy lapses." [1][3][4][6][7][8]

Fees and surcharges on top of the premium

Your total annual payment includes more than the premium itself. FloodSmart lists these charges:

• Increased Cost of Compliance (ICC) premium: "1.9% of the policy's building and contents coverage premiums, not to exceed $75."
• Reserve Fund Assessment: "18% of the discounted premium."
• HFIAA surcharge: "$25 for primary residences; $250 for all other occupancies."
• Federal Policy Fee: "$47 for most policies," with different amounts for residential condominium buildings.
• Probation surcharge: "$50 per policy" if your community is on NFIP probation.

[1][8]

Discounts and ways to lower the price

• Community Rating System (CRS). Communities that do more than the minimum to manage flood risk can earn NFIP discounts "of 5% - 45% based on the Community Rating System classification." The discount applies to eligible policies in the community regardless of flood zone. Ask your local floodplain manager whether your community takes part.
• Mitigation discounts. FEMA offers discounts for elevating machinery and equipment (such as water heaters and electrical panels) above the first floor and for proper flood openings in an enclosure or crawlspace. FloodSmart's mitigation discount tool estimates what you might qualify for.
• Elevation certificate. FloodSmart says elevation certificates "aren't required to get flood insurance, but they can help you pay less." See elevation certificate.
• Statutory discounts. These include a Pre-FIRM discount for primary residences built or improved before December 31, 1974, or before the community's first flood map, and a Newly Mapped discount for buildings newly mapped into a high-risk area. The Newly Mapped discount must be applied within a year of the map change.
• Higher deductible. Choosing a higher deductible means paying more yourself after a flood, but "your overall flood insurance premium may be lower." By law, residential policyholders can choose deductibles up to $10,000.

[1][3][8][9][10][11][12]

How to get a quote

You buy NFIP coverage through an insurance agent or one of the companies that sell NFIP policies. FloodSmart has a directory of participating providers by state. FloodSmart also says NFIP rates "don't vary by insurance provider," because all of them use FEMA's pricing approach. You can also get a personalized estimate online from FloodSmart.

Most new policies take effect 30 days after purchase. Details are in what flood insurance covers. [10][11][13]

Questions people ask