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State Flood Insurance Rates Vary Greatly, Even Among Coastal States

A new ValuePenguin.com study has found that while flood insurance in states like Texas and Florida cost $581 and $550 a year on average, flood insurance in Rhode Island and New York cost $1389 and $1155 respectively. Additionally, just 7 percent of American homeowners have a flood insurance policy, compared to the 91 percent of owner-occupied homes who have homeowners insurance.

With the 2019 Atlantic hurricane season less than a month away, the need for flood insurance has never been more urgent. Nearly three-fourths of U.S. adults think destructive weather events such as hurricanes are getting worse, and over 40 percent of Americans have encountered weather events that caused property damage or forced them to evacuate their homes. Yet flood insurance coverage ratios vary widely by state.

Key Findings:

  • The states with the highest percentage of homeowners with flood insurance are Louisiana (44 percent), Florida (36 percent), Hawaii (23 percent), South Carolina (16 percent) and New Jersey (11 percent).
  • The states with the lowest rate of coverage are Minnesota (0.6 percent), Utah (0.6 percent), Michigan (0.8 percent), Wisconsin (0.8 percent) and Ohio (1.1 percent).
  • The average cost of a flood insurance policy through the National Flood Insurance Program (NFIP) is $699 per year, but flood insurance premiums vary significantly across the country.

  • The five most expensive states to purchase flood insurance are ConnecticutRhode IslandVermontMassachusettsand Pennsylvania, where premiums are 69-100 percent above the national average. On the flip side, NFIP policies in TexasMaryland and Florida are the cheapest in the nation, and cost 17-21 percent below the national average.

ValuePenguin calculated share of homeowners with a flood insurance policy by comparing NFIP policies in force (source: FEMA) to owner-occupied housing units (source: U.S. Census Bureau). Their analysis does not include private flood insurance policies, which make up a minimal share of the overall flood insurance market.

State Share of  Rank (1st  Yearly  Difference  Flood 
Homeowners  indicates the  Flood  from  Insurance Cost 
with Flood  state with the  Insurance  Average Rank (1st 
Insurance most  Premium indicates the 
widespread  state paying 
coverage) the least)
Louisiana 43.50% 1 $664 -5% 5
Florida 35.50% 2 $550 -21% 1
Hawaii 22.80% 3 $673 -4% 8
South Carolina 15.50% 4 $672 -4% 7
New Jersey 11.10% 5 $961 37% 33
Delaware 10.40% 6 $724 4% 15
Texas 10.20% 7 $581 -17% 3
Mississippi 8.50% 8 $695 -1% 12
Rhode Island 5.60% 9 $1,389 99% 49
North Dakota 5.40% 10 $677 -3% 9
North Carolina 5.20% 11 $814 16% 20
Virginia 5.00% 12 $737 5% 17
New York 4.60% 13 $1,155 65% 46
Maryland 4.50% 14 $573 -18% 2
Alabama 4.30% 15 $687 -2% 11
Connecticut 4.20% 16 $1,395 100% 51
Massachusetts 3.90% 17 $1,251 79% 48
Georgia 3.70% 18 $684 -2% 10
California 3.50% 19 $806 15% 19
Oregon 3.00% 20 $889 27% 28
West Virginia 2.90% 21 $1,104 58% 45
New Mexico 2.50% 22 $843 21% 21
Arkansas 2.20% 23 $847 21% 22
New Hampshire 2.20% 24 $1,060 52% 42
Washington 2.20% 25 $901 29% 30
Nevada 2.10% 26 $721 3% 14
Maine 2.10% 27 $1,065 52% 43
Arizona 2.10% 28 $666 -5% 6
Vermont 2.10% 29 $1,391 99% 50
Nebraska 1.90% 30 $998 43% 36
Idaho 1.90% 31 $746 7% 18
Kentucky 1.80% 32 $971 39% 34
Montana 1.70% 33 $704 1% 13
Tennessee 1.70% 34 $861 23% 25
Pennsylvania 1.70% 35 $1,176 68% 47
District of 1.60% 36 $724 3% 15
Columbia
South Dakota 1.60% 37 $931 33% 32
Colorado 1.60% 38 $856 22% 23
Alaska 1.60% 39 $902 29% 31
Iowa 1.50% 40 $1,045 49% 40
Oklahoma 1.40% 41 $856 22% 23
Missouri 1.30% 42 $1,071 53% 44
Indiana 1.30% 43 $999 43% 37
Kansas 1.30% 44 $882 26% 26
Wyoming 1.30% 45 $888 27% 27
Illinois 1.30% 46 $1,045 49% 39
Ohio 1.10% 47 $1,047 50% 41
Wisconsin 0.80% 48 $973 39% 35
Michigan 0.80% 49 $1,008 44% 38
Utah 0.60% 50 $654 -6% 4
Minnesota 0.60% 51 $900 29% 29

 

 

 

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