Averages and Determining Factors of Flood Insurance Cost in Florida

One inch of water can cause $25,000 worth of damage to your house. With so many Floridian living on floodplains, the importance of flood insurance is a no-brainer. 

The biggest concern to most people is flood insurance cost, what’s covered, and fitting that into the budget. If you’re a Florida native or planning to move, here is what to expect for the cost of coverage and what factors impact that pricetag. 

Flood Insurance Requirements in Florida

Per federal regulation, Floridians need to purchase flood insurance if they live in a community that participates in the National Flood Insurance Program (NFIP) or if they have a federally-backed mortgage. 

The NFIP requires homeowners to purchase flood insurance if they live in a high-risk flood zone and coastal high-risk flooding areas. The only way around this is if you qualify for a Letter of Map Amendment (LOMA). A registered professional engineer or land surveyor must certify that your property elevation is at or above the base flood elevation.

There are no regulations under Florida state law that require the purchase of flood insurance. The Florida Office of Insurance Regulation oversees the compliance and enforcement of state statutes in regard to the business of insurance. 

What Is the Flood Insurance Cost in Florida?

The average annual cost of flood insurance in the state of Florida is $562 for policies through the NFIP.

Depending on where you live, rates vary widely. Your house’s structure, property elevation, and whether you’re in a high-risk flood zone are all determining factors. Check which zone your home is in through the FEMA Flood Map Service Center.

If the house is a rental property or if it’s occupied for less than half the year, your quote may be higher along with higher fees. The NFIP annual surcharge is $25 for each policy but this number jumps to $250 if it’s a vacation home. 

What’s Covered?

Private flood insurance provides coverage for both building property and personal property while NFIP flood insurance requires you to buy them separately. 

Building property coverage is for structural damage including the foundation, HVAC system, appliances, and electrical and plumbing systems. Personal property coverage is for your personal belongings. This includes furniture, food, clothing, and appliances.

Getting a Quote

Even if you’re not required to purchase flood insurance, it’s good to have. The cost of NFIP policies is regulated by the U.S. government and managed by private insurance companies. This means there’s no need to compare providers based on price.

If you need it, it’s best to choose the company that makes the process as simple as possible. 

Are You Covered?

Repairing flood damage isn’t cheap and the only way to protect yourself is with flood insurance. While flood insurance cost may be high in some areas, the protection it offers makes it worth every penny. 

Are you living in Florida or planning to move here? Check out our blog for more about Florida commercial and residential real estate.