How Much Is Flood Insurance in Minnesota? Average Flood Insurance Cost and Coverage

How much flood insurance costs in Minnesota varies by county and individual risk factors, including your home’s design, elevation, flood risk level and more.

Flood insurance is important because homeowners or renters insurance doesn’t cover losses due to floods or extreme weather events. Just one inch of water can cost up to $25,000 in repairs, according to the Federal Emergency Management Agency (FEMA).

To assess your home’s risk level, you can review a flood map. Flood insurance can be beneficial even to those that live in a low-risk flood zone, as you’ll avoid paying high costs for flood-related repairs.

TABLE OF CONTENTS

• Cost of Flood Insurance in Minnesota
• Flood Insurance Companies in Minnesota
• Flood Insurance Coverage
• Flood Insurance Cost Factors in Minnesota
• Do You Need Flood Insurance?
• Minnesota Flood Insurance FAQs

In Minnesota, flood insurance typically costs $1,031 a year. However, depending on your county's flood risk, your cost may vary. Homes in flood zones with a moderate risk of flooding or a high risk of flooding often cost more to insure.

The annual flood insurance cost in Minnesota is $263 more expensive than the national average. Minnesota may have more floodplains than other states, accounting for the higher cost.

In Minnesota, Martin County has the cheapest average premium and Nobles County has the most expensive at $266 and $2,806 per year, respectively. The table below shows the average cost of flood insurance by county in Minnesota.

Flood insurance is available from the NFIP or private insurance providers. Private providers offer a base policy, which has similar coverage to NFIP policies. You can supplement your base policy with an excess policy, which provides additional coverage. Families that need more coverage than what the NFIP offers, as well as those that are not part of an NFIP community, should consider purchasing flood insurance from a private provider.

The NFIP also has affiliated insurance providers in Minnesota that offer flood insurance. For your convenience, MoneyGeek prepared a list of insurance firms that are NFIP participants, along with their respective phone numbers.

Since there are no particular requirements for buying flood insurance, the process is simple and straightforward. You can start by calling the NFIP at 877-336-2627 or speaking with your home insurance agent.

MoneyGeek advises purchasing flood insurance as soon as possible. In contrast to the majority of commercial insurance companies in Minnesota, which typically have at least a 10-day waiting period, the NFIP has a 30-day waiting period before its policies go into effect. To verify, contact your provider.

Your building and most of its contents are covered by standard flood insurance. Keep in mind that even one inch of water in your property can result in $25,000 in flood damage.

Only your personal property and damage to your building's structure are covered by basic flood insurance. It does not include additional coverage for landscaping, decks, papers, pools or vehicle flooding.

Building coverage in flood insurance covers the cost of structural repairs and replacements to your home. You can purchase up to $250,000 of building coverage with NFIP insurance.

Among the items that flood insurance may protect against are:

• Foundation walls
• Electrical systems
• Plumbing systems
• Furnaces, central heating and air conditioning
• Built-in appliances
• Permanent carpets
• Built-in furniture

Meanwhile, contents coverage is the portion of flood insurance that covers your personal belongings, including:

• Clothing
• Furniture
• Electronic equipment
• Washers and dryers
• Artwork

Contents coverage for NFIP policyholders is available for up to $100,000.

Before FEMA introduced Risk Rating 2.0 in October 2021, the cost of flood insurance was based on your home’s location on a flood map. A tool on the FEMA website displays a state's flood risk and possible storm-related expenses.

Cass County, one of the Minnesota counties for which MoneyGeek has cost data, has had the fewest flooding incidents — only five — since 1996, while Winona County has seen the most, with 61 recorded. In Cass and Winona, flood insurance policies typically cost $479 and $1,212, respectively.

FEMA unveiled a new risk rating framework in October 2021, which they called Risk Rating 2.0. In addition to mapping flood zones, this system assesses individual property hazards, including foundation type, building construction, elevation, replacement and repair costs and frequency of floods.

Risk Rating 2.0 offers a more specialized premium computation than the previous approach. It’s also worth noting that where you reside is still a big factor in determining how much your flood insurance is. Below, MoneyGeek breaks down a few of these pricing variables for flood insurance.

Government-backed mortgages and creditors require those that live in high-risk flood zones to have flood insurance. However, flooding is a risk for all homes, which is why we encourage residents in low- or moderate-risk flood zones to also think about purchasing a policy.

Private flood insurance offers several benefits. If your house floods, but there isn't a presidential disaster proclamation, providers must still fulfill claims. The typical household cap for a federal disaster assistance grant is $5,000, but costs for flood damage can easily exceed this limit.

Flood insurance provides policyholders with additional security and peace of mind overall.

To help you understand more about flood insurance in Minnesota, MoneyGeek provided answers to some commonly asked questions below.