Many Florida homeowners recently saw a significant cost change for flood insurance premiums.

The Federal Emergency Management Agency (FEMA) phased in risk-based pricing for policies with the National Flood Insurance Program (NFIP), increasing costs for 80% of Florida homeowners with NFIP policies and reducing them for 20%.1 Some saw a major increase; Franklin County’s premium rose by more than $3,500 per year.

Florida is already the most expensive U.S. state for home insurance, with an annual median rate of $10,996, according to Insurify data. Flood insurance costs may change to meet assessed risk, which could shift given the changing severe weather patterns affecting Florida.

Do you need flood insurance in Florida?

Florida law doesn’t require flood insurance for all homeowners, but most still need it. NFIP flood insurance is available to anyone in participating communities, and only 10 aren’t in the program.

Anyone with a federally backed mortgage in a special flood hazard area (SFHA) has to get coverage. An SFHA is any area with special flood, mudflow, or flood-related erosion hazards, according to FEMA. Everyone in the U.S. and Florida lives in an area with some flood risk, so it’s just a matter of how high or low yours is.

In 2022, Florida started requiring flood insurance for anyone with a homeowners policy through the state’s insurer of last resort, Citizens Property Insurance Corporation, regardless of their flood zone.

Understanding Florida’s flood zones

FEMA produces maps showing flood risk across the U.S. based on the most recent available data. SFHA zone designations start with “A” or “V,” while other letters signify low- or moderate-risk areas or areas with undetermined risk.

If you’re unsure if you’re in a high-risk zone, you can check your home or property’s risk rating with FEMA’s flood mapping tool. If you enter an address, coordinates, or even your city or county, the map will display the SFHAs in blue.

NFIP flood coverage is available to anyone in a participating community, which includes most of Florida. FEMA doesn’t use flood zones to calculate premiums but does use flood-risk information to set premiums based on a property’s risk.

Cost of flood insurance in Florida

FEMA phased in a risk-based pricing approach which took full effect in 2023. Before this, homeowners were paying more or less than their actual risk, creating unfair premiums, according to FEMA.

Now FEMA looks at the likelihood of different flooding events as well as additional information like elevation and distance from flood sources, levee performance, and building characteristics, resilience, and replacement costs.2 NFIP premiums can change based on community development and infrastructure decisions, FEMA notes.

The average annual cost of an NFIP policy for single-family Florida homes is $2,213, above the national average of $1,808, the most recent FEMA data shows. Premiums vary geographically. For example, central Florida’s Marion County policyholders pay a $659 average annual premium, while southern Monroe County averages $4,622 per year.

Will Florida flood insurance rates continue to rise?

For most property owners, yes. Rates increased for 77% of policyholders as FEMA phased in risk-based pricing between October 2021 and April 2023. Only 4% saw rate increases of more than $20 per month.

NFIP rates will continue to rise as FEMA brings premiums in line with risk. By law, the NFIP can’t increase rates by more than 18% annually for primary residence policies. Premiums for other properties, like non-primary residences and business properties, must increase by 25% annually until they reach full risk-based rates.

Rates will likely change as aging structures and severe weather patterns shift FEMAs assessed risk levels.

What flood insurance covers

You can purchase building and contents coverage through the NFIP, which will pay for any losses or physical damage directly resulting from flooding.

Building coverage protects:

• Electrical, plumbing systems

• Furnaces, water heaters

• Refrigerators, cooking stoves, dishwashers

• Permanently installed carpeting

• Permanently installed cabinets, paneling, bookcases

• Window blinds

• Foundation walls, anchorage systems, staircases

• Detached garages

• Fuel tanks, well water tanks/pumps, solar energy equipment

Contents coverage protects:

• Personal belongings

• Curtains

• Washer and dryer

• Portable/window air conditioners

• Microwave oven

• Non-permanent carpets

• Valuable items (up to $2,500)

What flood insurance won’t cover

NFIP covers damages from a sewer backup only if flooding directly causes them. Policies cover basement cleanup expenses and service appliances or systems but not finished basement improvements or contents.

Here’s what’s an NFIP building or contents policy won’t cover:

• Temporary housing and living expenses

• Property outside the insured building (landscaping, wells, patios, fences, pools, etc.)

• Financial losses caused by business interruption

• Currency, precious metals, stock certificates, valuable papers

• Cars/self-propelled vehicles (including parts)

• Personal property in basements

How to get flood insurance

FEMA partners with 31 insurance companies in Florida to offer NFIP policies. Here’s how to secure NFIP flood insurance in three steps:

Average cost of home insurance in Florida

State Farm is the cheapest homeowners insurance company in Florida. But it may not be the right carrier for your coverage needs. 

The table below breaks down some of Florida’s cheapest home insurance companies.

Florida flood insurance FAQs