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9 in 10 American Homeowners Don't Have Flood Insurance, ValuePenguin.com Finds

NEW YORK, May 8, 2019 /PRNewswire/ -- Floods are the nation's most common natural disaster, but nearly 9 in 10 American families aren't adequately insured against the costly damages caused by flooding. A new ValuePenguin.com study has found that 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 Connecticut, Rhode Island, Vermont, Massachusetts and Pennsylvania, where premiums are 69-100 percent above the national average. On the flip side, NFIP policies in Texas, Maryland 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). This analysis does not include private flood insurance policies, which make up a minimal share of the overall flood insurance market.

To view the full report, visit: https://www.valuepenguin.com/average-cost-flood-insurance.

States Most and Least Prepared for a Flood

State

Share of
Homeowners
with Flood
Insurance

Rank (1st
indicates the
state with the
most
widespread
coverage)

Yearly
Flood
Insurance
Premium

Difference
from
Average

Flood
Insurance Cost
Rank (1st
indicates the
state paying
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
Columbia

1.60%

36

$724

3%

15

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

About ValuePenguin.com: ValuePenguin.com, now part of LendingTree (TREE), is a personal finance website that conducts in-depth research and provides objective analysis to help guide consumers to the best financial decisions. ValuePenguin focuses on value, assessing whether the return of a particular decision is worth the cost or risk of that option, and how this stacks up with the other possible choices they may have. For more information, please visit www.valuepenguin.com, like our Facebook page and follow us on Twitter @ValuePenguin.

About LendingTree
LendingTree (TREE) is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network, and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.

Media Contacts:
Divya Sangam
646 693 8445
divya@valuepenguin.com

 

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