Flood Insurance: What It Costs and Why You Need It

The average cost of a flood insurance policy is about $888 a year, but premiums vary depending on your property's flood risk.

An aerial view of houses flooded after a storm.
(Image credit: Getty Images)

Floods, hurricanes and seasonal rainfall can wreak havoc if you aren’t prepared and properly insured. You need more than some fresh batteries and bottled water. You need flood insurance. Homeowners insurance typically covers damage that comes from the top down — such as rain and wind damage — but it doesn't cover rising water and flooding. 

Hurricane Idalia was the latest major storm to batter Florida and other East Coast states and cities. Idalia made a historic landfall in Florida's Big Bend — no major hurricanes have been tracked in Apalachee Bay since records started being kept in 1851. Preliminary estimates of the damage put it between $9.3 billion, according to UBS, and $20 billion, according to AccuWeather.

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Donna LeValley
Personal Finance Writer

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation. 

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