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How much does flood insurance cost?

Flood insurance premiums vary and are calculated based on several factors. These include:

  • Year of building construction
  • Building occupancy
  • Number of floors
  • The location of the contents in the building
  • The flood risk of the building (i.e., its flood zone)
  • The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)
  • The deductible you choose and the amount of building and contents coverage.

Federal flood insurance may be purchased through insurance companies, which sell policies through their network of agents. The coverage is provided by the Federal Emergency Management Agency (FEMA) and its National Flood Insurance Program (NFIP). Flood insurance coverage may also be provided by private insurance companies.

If flood insurance is required in connection with a loan, but the borrower does not purchase the required amount of flood insurance, the lender must force place coverage after providing notice to the borrower and may charge the borrower for the cost of premiums and fees incurred in purchasing the insurance. Force placed flood insurance coverage is often more expensive than coverage under a policy purchased directly by the borrower.

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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