Are people canceling flood insurance because of the cost?
Our survey found that 3.5% of respondents canceled flood insurance in 2025 due to the cost. The rising cost of home insurance, along with FEMA’s Risk Rating 2.0, which increased flood insurance rates in many locations, has put a financial strain on many homeowners. For some, flood insurance was cut from their budget. Unfortunately, that leaves more homes exposed in an area where many are already underinsured.
“As their homeowners insurance rises, it is natural to look for alternative places to save; however, this can be a very costly gamble,” Hodges says.
Here’s a look at how many homeowners in our survey canceled their flood insurance in the top five states for flood claims.
| State | % of respondents who canceled flood insurance |
|---|---|
| Florida | 8% |
| Louisiana | 0% |
| New Jersey | 50% |
| New York | 13% |
| Texas | 21% |
Places with a higher flood risk saw the greatest increase in rates, as a general rule, in FEMA’s new rating system. FEMA claims data shows that the top five states for flood claims are Florida, Louisiana, New Jersey, New York and Texas. An incredible 75% of flood claims are paid in those five states.
Here’s a look at how much rates went up, on average, in those five states.
| State | Average annual rate, 2023 | Average annual rate, 2024 | Average annual rate, 2025 |
|---|---|---|---|
| Florida | $693 | $1,311 | $1,421 |
| Louisiana | $702 | $1,062 | $1,170 |
| New Jersey | $1,151 | $1,376 | $1,479 |
| New York | $1,130 | $1,447 | $1,557 |
| Texas | $595 | $1,020 | $1,116 |
These states also pay higher than average home insurance rates, making expensive flood insurance something homeowners may opt out of when possible to keep costs down.
Why are flood insurance costs rising?
Flood insurance rates are rising in response to rising risk as well as changes in the way FEMA calculates how it prices policies for the anticipated risk in each area.
As severe weather becomes more frequent and heavy rainfall causes flooding in more and different locations, rates have to rise in order to cover the claims that are paid out.
That's compounded by the increase in the cost of building materials caused by inflation, tariffs and supply chain issues. The more it costs to rebuild after a flood, the higher rates will become.
How many Americans have flood insurance?
Our survey found that 22% of respondents have a flood insurance policy, although statistics from third-party sources vary.
The Insurance Information Institute (Triple-I), per Mark Friedlander, director of corporate communications in Florida, told Insurance.com when discussing natural disaster underinsurance that 4% of Americans have flood insurance, but statistics on Triple-I's website range from 16% to 27%.
Because flood policies are sold both by the National Flood Insurance Program (NFIP) and private companies, some discrepancy in the numbers is expected.
Still, our poll results show a surprisingly high count of people with flood insurance compared to other statistics, which the location of respondents may influence; just over a quarter (25.7%) live in the top five states for flood claims.
PEOPLE ASK
Is flood insurance worth it?
Flooding is not covered by homeowners insurance, so flood insurance is well worth it to protect against damage, especially if you live near a body of water or in an area prone to severe storms with heavy rain.
Flood insurance in high-risk states
Based on our survey, here’s a look at how many people in each of the top five states for flood claims (Florida, Louisiana, New Jersey, New York and Texas) say they have flood insurance, and the difference from 2025 to 2026.
| State | 2025 | 2026 |
|---|---|---|
| Florida | 32% | 34% |
| Louisiana | 67% | 18% |
| New Jersey | 23% | 9% |
| New York | 13% | 14% |
| Texas | 32% | 37% |
The extreme drop in Louisiana is concerning, but it could reflect a difference in the locations of respondents from one year to the next. New Jersey also saw a drop, albeit a smaller one, while the other three states each saw small increases. Each of these states has been hit by catastrophic hurricanes that led to serious flooding, and seeing the results of flooding is a powerful lesson.
The devastating effects of the July 2025 flood in Texas, where more than 110 people were killed, are a sobering reminder of the sudden, deadly results of flooding.
The survey didn’t select the respondents' locations, so the numbers may reflect more or fewer respondents who live in high-risk coastal areas. We also don't know if these homeowners have an NFIP policy or coverage through a private flood insurance company, where rates differ.
How many people have flood insurance in each state?
Floods can happen in every state, and experts believe catastrophic flooding will likely become more frequent. However, insurance coverage in low-risk states remains uncommon.
“Climate models suggest that a trend toward more precipitation falling in larger precipitation events is likely in the future. It is increasingly apparent that such a trend may already be underway,” Robinson says.
We asked all survey respondents whether they had a flood insurance policy. Below are the survey responses by state and the change from 2025 to 2026. It's important to note that there are fewer respondents in some states than in others, so 0% in Alaska represents a smaller sample size than in, for example, Florida.
| State | 2025 | 2026 |
|---|---|---|
| Alabama | 33% | 16% |
| Alaska | 0% | 0% |
| Arizona | 15% | 27% |
| Arkansas | 17% | 67% |
| California | 23% | 19% |
| Colorado | 0% | 13% |
| Connecticut | 0% | 30% |
| Delaware | 0% | 20% |
| Florida | 32% | 34% |
| Georgia | 26% | 28% |
| Hawaii | 0% | 0% |
| Idaho | 0% | 0% |
| Illinois | 32% | 23% |
| Indiana | 0% | 14% |
| Iowa | 0% | 0% |
| Kansas | 25% | 17% |
| Kentucky | 15% | 20% |
| Louisiana | 67% | 18% |
| Maine | 0% | 0% |
| Maryland | 7% | 43% |
| Massachusetts | 9% | 14% |
| Michigan | 9% | 20% |
| Minnesota | 0% | 8% |
| Mississippi | 50% | 60% |
| Missouri | 17% | 0% |
| Montana | 0% | 0% |
| Nebraska | 0% | 0% |
| Nevada | 7% | 27% |
| New Hampshire | 0% | 25% |
| New Jersey | 23% | 9% |
| New Mexico | 0% | 33% |
| New York | 13% | 14% |
| North Carolina | 48% | 23% |
| North Dakota | 0% | 0% |
| Ohio | 13% | 25% |
| Oklahoma | 10% | 0% |
| Oregon | 22% | 8% |
| Pennsylvania | 7% | 11% |
| Rhode Island | 0% | 17% |
| South Carolina | 33% | 50% |
| South Dakota | 0% | 0% |
| Tennessee | 20% | 18% |
| Texas | 32% | 37% |
| Utah | 0% | 10% |
| Vermont | 0% | 0% |
| Virginia | 9% | 26% |
| Washington | 11% | 19% |
| West Virginia | 0% | 33% |
| Wisconsin | 7% | 13% |
| Wyoming | 0% | 50% |
Should you buy flood insurance?
If you live in a high-risk flood area, you should buy flood insurance and are likely required to do so by your mortgage company. But you should consider buying it even if you life in a low-risk area.
Millions of Americans living in lower-risk areas may not think they need coverage until they do. As climate change drives unexpected weather patterns, whether you need flood insurance no longer has a cut-and-dried answer. Floods happen everywhere. And while the risk might still be low where you live, the cost of not having it is high.
“Usually, it is as simple as too much rain in too short a period. The result being flash flooding that can quickly engulf people, vehicles, buildings (including basement apartments) in dangerous flood waters. A tragic recent example of this in New Jersey is the initial flash flooding (followed later by riverine flooding) from post-Tropical Cyclone Ida on September 1, 2021,” Robinson says.
The good news is that flood insurance is very affordable in low-risk areas and well worth it for peace of mind. And if you’re in a high-risk area, even the higher premium is a good investment, considering that an inch of flood water can do $25,000 in damage, per the NFIP.
While everyone has to weigh risk against premiums, experts agree that far more people need flood insurance than have it.
“Everyone should be cognizant of weather forecasts, know how to receive watches and warnings of flooding (be it flash flooding or riverine flooding) and know how to respond to emergency information (e.g., “turn around, don’t drown” and much more). This is a matter of safety, but there is also concern for risks to infrastructure, perhaps your home, that should not be ignored,” Robinson says. “This is certainly most critical in areas with a high flood risk, but as we’ve seen recently in NJ, these areas are now something akin to moving targets with climate change and a keen influence of reconfigured flood zones.”
Methodology
In the spring of 2026, Insurance.com polled 1,510 people with insurance. The poll was conducted by Dynata. Homeowners were asked if they have flood insurance currently, and if they have canceled flood insurance in the past 12 months. All percentages in tables are rounded to the nearest whole number.
Sources:
FEMA. “Facts and Myths about flood insurance.” Accessed April 2026.
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