A standard homeowners or renters insurance policy typically doesn’t provide coverage against damage caused by flooding. You must have a separate flood insurance policy in Michigan to ensure protection against flood damage.
The Federal Emergency Management Agency (FEMA) Risk Rating 2.0 system uses various factors and individual property risks to determine your premium. These factors include your home’s elevation, replacement and repair costs, policy coverage amount and deductible.
Michigan has multiple high-risk flood zones, which makes it essential to check if your home is in a medium-risk or high-risk flood zone. If that’s the case, you should get flood insurance to ensure protection against the high costs associated with flood damage. FEMA estimates that even an inch of water can cause $25,000 in damages.
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With a standard homeowners or renters insurance policy in Michigan, you likely won’t have coverage for floods. You should have a flood insurance policy for necessary coverage.
The Risk Rating 2.0 system analyzes your location in Michigan, home elevation, physical structure, policy coverage amount, deductible and other important factors to determine the premium.
Buying flood insurance is straightforward and doesn’t have any special requirements.
Average Cost of Flood Insurance in Michigan
Based on MoneyGeek’s research, the average flood insurance policy cost in Michigan is $1,047 per year. However, your cost might differ depending on your location in Michigan since it’s affected by the individual property and flood risks. Living in a moderate-risk or high-risk flood zone will increase your insurance rate.
Average Cost of Flood Insurance by County in Michigan
Since many areas in Michigan are likely to be hit by floods, insurers charge a higher rate than the national average for flood insurance in the state. MoneyGeek’s analysis shows Schoolcraft County is the cheapest location for flood insurance in Michigan — a policy costs around $366 per year. The most expensive is Ingham County, with an average cost of $1,983 annually.
The list below shows flood insurance costs by county in Michigan.
Michigan Flood Insurance Cost Per County
Companies That Offer Flood Insurance in Michigan
While the NFIP offers flood insurance, buying it from a private insurance company is also an option. The companies provide you with a base policy similar to NFIP or an excess policy with supplemental coverage. Private insurers are ideal for households not in an NFIP community or that find its coverage insufficient.
Private Flood Insurance Providers in MI and Their Contact Numbers
Aon Private Flood
Hiscox - FloodPlus
FloodSimple Insurance Services
Some private insurance companies partner with the NFIP to provide flood insurance policies in Michigan. MoneyGeek listed these companies in the table below.
NFIP-Participating Flood Insurance Providers in State and Their Contact Numbers
Allstate Insurance Company
American Strategic Ins. Corp.
Auto Owners Insurance Co.
Refer to the Agent locator
Farmers Insurance Group
Hartford Fire Insurance Co.
Hartford Underwriters Ins. Co.
Homesite Insurance Company
How to Purchase Flood Insurance and Its Coverage Requirements
Purchasing a flood insurance policy doesn’t involve following a complicated process, and no special requirements exist. To buy a policy, contact the NFIP at 877-336-2627 or get in touch with your home insurance agent.
You can also buy a flood insurance policy from a different provider. However, it’s essential to do it as soon as possible as most providers have a 10-day waiting period, and the NFIP has a 30-day waiting period. You can call your provider to confirm the necessary details.
What Does Flood Insurance Cover in Michigan?
A flood insurance policy typically compensates you for damages to the home’s structure or contents. It’s important to know that even an inch of water can cause damages worth up to $25,000.
Flood insurance doesn’t provide protection against damage from flooding due to broken pipes, leaking appliances, a roof leak or other unnatural causes. It only provides coverage against flooding damage due to natural weather events.
A flood insurance policy doesn’t offer coverage against damage to a swimming pool, decks, patios, landscaping, cash and paperwork, basement items and vehicles. If you want protection for your car, it’s best to buy comprehensive insurance.
Flood Insurance Building Coverage
Building coverage covers your home's physical structure and helps repair or replace it if it's damaged due to a covered peril. You can purchase up to $250,000 worth of building coverage flood insurance from the NFIP, which can protect you against damage to the following things:
- Foundation walls
- Electrical systems
- Plumbing systems
- Furnaces, central heating and air conditioning
- Built-in appliances
- Permanent carpets
- Built-in furniture
Flood Insurance Contents Coverage
If your personal items are damaged by a covered peril, having contents coverage can ensure that you’ll get compensation for their repair or replacement. The $100,000 coverage amount you can get on a flood insurance policy can cover the following items:
- Electronic equipment
- Washers and dryers
Factors That Affect Flood Insurance Costs in Michigan
Before October 2021, insurers only considered your general location and flood risk to determine your flood insurance costs. Your flood risk was determined using a flood map. If you want to know the historical flood risk of Michigan, FEMA’s online tool is pretty helpful.
Based on MoneyGeek’s analysis, Wayne County in Michigan has had the most flood events. A flood insurance policy in this county costs around $1,032 per year. On the other hand, Branch County has had the least flooding events, and the average cost of a policy in this county is $1,195 per year.
Wayne County is not the most expensive location for a flood insurance policy in Michigan, but it is a large area, which could account for the number of floods it has experienced.
Risk Rating 2.0
FEMA introduced the Risk Rating 2.0 system in October 2021. It offers premiums for flood insurance that consider individual factors like the house’s foundation type, dwelling structure, elevation, replacement and repair costs, etc. Still, your location plays a vital role in determining your Michigan flood insurance premium.
The table below lists factors that have a significant effect on the cost of a flood policy in Michigan.
The Risk Rating 2.0 system analyzes flood risk on an individual basis, which means you and your neighbor may not have the same flood risk. If you live in a high-risk flood zone, it will mean paying a higher premium.
The amount and type of coverage you select affect your flood insurance premium. Your available options may vary depending on your location.
Opting for a policy with a higher deductible can lower your monthly payment. You can choose between various deductibles; however, remember you will have to pay it when filing a claim.
Age of Structure
The age of your home’s structure impacts how much you pay for a flood insurance policy.
Your home’s design and the materials used in construction affect your insurance costs.
Do You Need Flood Insurance in Michigan?
Buying a flood insurance policy can be an excellent investment as every property is vulnerable to flooding. If your home is in a high-risk flood zone, government-backed mortgages and private insurers will make it mandatory for you to buy a policy.
Even if you don’t live in such an area, FEMA recommends having a policy for additional protection. It can also offer peace of mind — because homeowners and renters insurance usually does not provide coverage against flood damage.
The federal disaster assistance is not more than $5,000 — a flood insurance policy can offer much more compensation than that without a presidential disaster declaration.
Frequently Asked Questions About Michigan Flood Insurance
MoneyGeek answered the most frequently asked questions about flood insurance in Michigan so you can understand its cost, available options and other essential details.
About Mark Fitzpatrick
- FEMA. "Flood Insurance." Accessed August 22, 2022.
- FEMA. "Historical Flood Risk and Costs." Accessed August 22, 2022.