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

Flood insurance costs in Alaska vary depending on where you live and the risk factors in your area. Building age, construction type and ground elevation are all factors to evaluate.

The majority of homeowners and renters insurance policies don't cover damage from natural disasters such as flooding. Approximately $25,000 in damage costs can be incurred by an inch of water, according to the Federal Emergency Management Agency (FEMA).

A flood zone map of Alaska will tell you if your home is in a flood zone. Flood insurance may be a good idea even if you live in a low-risk area.

TABLE OF CONTENTS

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

MoneyGeek's findings reveal that the average flood insurance cost in Alaska is $897 annually. However, your rates may differ. Several factors affect flood insurance costs, including flood-prone areas in your state and property risks. Generally, higher rates are charged in areas where flood risk is moderate or high.

In Alaska, flood insurance costs about $130 more than the national average since there are more flood-prone areas than in most other states.

The cheapest rate in Alaska comes from Hoonah-Angoon Census Area at around $270, while the most expensive rate comes from Ketchikan Gateway Borough at roughly $2,321. Below is a table showing average flood insurance rates by county.

You can purchase flood insurance from the NFIP or private companies. With private providers, you can opt for a base policy, which is similar to NFIP policies that cover claims up to a specified amount, or an excess policy, which provides additional coverage in the event of a claim exceeding the primary policy limits.

It is ideal to use a private provider if your NFIP coverage is inadequate for your needs or you don't live within the NFIP's service area.

Several insurance companies offer flood insurance through partnerships with the NFIP. You can find their contact information as well as company information in the following table.

Buying flood insurance is simple and requires no special qualifications. You can contact the NFIP Hotline (877-336-2627) or speak to your home insurance agent to obtain a policy. It's best to sign up as soon as possible because the NFIP has a 30-day waiting period.

Private insurance companies are another option for purchasing flood insurance, and this option generally has a 10-day waiting period. Verify this timeline with your provider.

The contents of your building, as well as its structure, are covered by flood insurance. Flood insurance can assist you in paying for repairs if you live in a flood zone. Even one inch of water can cause up to $25,000 in damage.

Damages to cash and paperwork, decks, swimming pools, patios, landscaping, basement items and vehicles are not covered by flood insurance.

The building coverage of your home’s flood insurance helps you fix or replace the physical structure of your home if it is damaged by a covered peril. Through the NFIP, coverage of up to $250,000 is available.

Insurance coverage for floods can include the following:

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

Contents coverage helps pay for the repair or replacement of belongings damaged by a covered peril. By purchasing flood insurance contents coverage through the NFIP, you can protect yourself up to $100,000.

Flood insurance may cover the following items:

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

Before October 2021, your general location and flood risk affected insurance costs. FEMA’s website offers information about historic floods in your state.

Several areas in Alaska haven't experienced flooding since 1996. The Hoonah-Angoon Census Area had no floods and earned the cheapest rate in the state at around $270. The Anchorage Muni to Bird Creek Area experienced 15 floods and costs around $834 annually.

While Ketchikan Gateway Borough doesn't flood frequently, its insurance rates are the highest at roughly $2,321. These premiums are due to the smaller size of the county, where flooding events are fewer but more concentrated.

October 2021 marked the introduction of FEMA's Risk Rating 2.0 system. The system evaluates individual property risks, including building structure, foundation type, elevation and replacement and repair costs, along with flood zone mapping.

Risk Rating 2.0 adjusts premiums according to a more personalized approach than its predecessor. It is still important to remember that where you live impacts flood insurance rates. The following factors influence the cost of flood insurance in Alaska.

Lenders and government-backed mortgages require flood insurance in high-risk flood zones. FEMA recommends flood insurance in low and moderate-risk flood zones since every property can be at risk of flooding.

Flood insurance generally isn't included in homeowner's or renter's policies, so you'll need to buy a separate policy from the NFIP or privately. You don't need a presidential disaster declaration to file a claim with your insurer. Also, federal disaster assistance grants are limited to $5,000 per household, which is inadequate.

Flood insurance gives you peace of mind knowing that you are protected in case of flooding.

To help you decide whether you need Alaska flood insurance, we answered a few of the most frequently asked questions.