How Is Flood Insurance Cost determined?

January 10, 2022
Aerial view of a residential neighborhood submerged in floodwaters


The cost of flood insurance can be confusing. The average flood insurance premium is $700 per year, but the price varies depending on the structure and location. Flood insurance premiums are increasing as a result of the increased frequency and severity of floods. 


The cost of a flood insurance policy varies depending on several factors, such as the location and age of the insured structure. Our blog will help you understand how to save money on your flood insurance policy.


  1. What is NFIP Flood Insurance, and how do you get it?
    If you live in a community that has been federally designated as being at risk for flooding, you are eligible to receive flood insurance. The National Flood Insurance Program provides policies to individuals and businesses that are considered high-risk for flooding. 

    You can apply for this coverage through the NFIP website or by contacting your insurance agent.

  2. How much is average flood insurance?
    The average flood insurance policy is about $1,000 per year. Some policies have a deductible, while others have a higher premium. Flood insurance offers protection against the cost of paying for property damage after a natural disaster such as a tornado or hurricane. 

    A homeowner's insurance policy will not cover a home that a flood has damaged.

  3. How are flood rates determined?
    Flood insurance rates are determined by a complicated formula that considers several factors, including the type of construction and location. Your potential flood risk will also affect what you pay for a policy. Flooding becomes more likely in areas with high rainfalls and elevation changes. 

  4. How to get a lower flood insurance rate?
    The best way to get a lower flood insurance rate is to buy a policy before a flood. It will ensure that you have the right coverage and won't be paying over the odds for your policy. Your agent can also help you choose the right insurance for your specific needs.

Conclusion

Floods can happen anywhere and at any time, but you can't be prepared for a flood if you don't know what you're up against. Flood insurance is a way to prepare for the worst - even though we hope that you won't need it.


At Brad Spurgeon Insurance Agency Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (409) 945-4746. Get your free quote today by CLICKING HERE.

September 15, 2026
If you own a home in Texas City, you already know windstorm insurance isn't optional, and you've probably felt the sting of the premium on your renewal notice. Years of active hurricane seasons along the Gulf have pushed rates higher across the board, but that doesn't mean you're stuck accepting whatever number your ca
A damaged, peeling wall with dark mold growth
September 9, 2026
Mold has a way of showing up in Texas City homes when you least expect it, and Gulf Coast humidity doesn't make it any easier to avoid. Between hurricane-season moisture, everyday humidity, and the occasional leaky pipe or roof, it's one of the more common issues local homeowners run into, and also one of the more misu
September 9, 2026
Owning a home along the Texas Gulf Coast means living with a level of risk most inland homeowners never think twice about. Between hurricane season, hail storms rolling in off the Gulf, and the ever-present threat of flooding after a heavy rain, a homeowners policy here has to work harder than it does almost anywhere e
September 9, 2026
Most Texas City homeowners assume that if their house takes on water, their homeowners policy has them covered. It doesn't, and finding that out mid-claim is one of the most expensive surprises a Gulf Coast homeowner can face. Flood damage is excluded from every standard homeowners and commercial property policy in the
Home, homeowners, and flood policy comparison over a flooded house illustration
September 7, 2026
How Texas coastal homeowners actually get hurricane coverage: TWIA 2026 limits, the declination rule, WPI-8 certificates, named-storm deductibles, and the flood policy that pays for surge. Written by a Gulf Coast agent.
Flooded beach house on stilts with roof damage and insurance claim callouts about a Gulf Coast short-term rental
September 7, 2026
How to insure a Galveston, Crystal Beach, Surfside, or Port Aransas short-term rental: TWIA wind, NFIP flood, Fire & Liability policy, from an experienced local Gulf Coast Insurance agent.
August 25, 2026
Learn why TWIA requires WPI-8 certification, which Texas coastal homes need it, key exceptions, and what to do if your certificate is missing.
A smiling parent sits on a couch and lifts a happy young child
August 19, 2026
Kids explore everything, and that curiosity is part of what makes childhood fun — but it also means everyday spaces in your home can hide risks you might not think twice about as an adult. A few thoughtful changes around the house can prevent the kinds of accidents that send families to the emergency room every year.
A view of two suburban houses
August 17, 2026
It's a question we hear often in Texas City, especially once a tropical system starts showing up in the forecast: can I still get flood insurance now, or is it too late? The honest answer is that it depends on your policy type and timing, and understanding how flood insurance waiting periods work can save you from a co
An American Red Cross emergency kit with supplies like water, a flashlight, goggles, and a poncho for flood survival.
August 10, 2026
Living near the Texas Gulf Coast means flooding isn't a rare or distant threat — it's a real possibility every hurricane season, and sometimes even after a heavy afternoon thunderstorm. Whether you're right along the water or a few miles inland, knowing how to prepare, evacuate, and recover safely can make all the diff
Show More