Flood insurance in Michigan: What you need to know

The average cost of NFIP flood insurance in Michigan is $87 per month. If you live in a high-risk flood zone, your mortgage lender may require this coverage.

Pat Howard 1600

By

Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a managing editor and licensed home insurance agent at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

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Around 366,735 properties in Michigan have a greater than one in four chance of being severely flooded over the next 30 years, according to Risk Factor. The metro Detroit area faces a particularly high risk given its low-lying landscape and proximity to major bodies of water. This area of the state is also expected to see a drastic increase in heavy rain events over the next 30 years, making flood insurance an important consideration for homeowners. [1]

Though flood insurance is not required by law in Michigan, if your house is located in a high-risk flood zone, or any area labeled A or V on FEMA’s flood maps, your mortgage lender may require you to purchase flood insurance.

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How much is flood insurance in Michigan?

The average cost of flood insurance in Michigan is $1,048 per year through the National Flood Insurance Program (NFIP), the federal government entity that provides the vast majority of flood insurance policies in the U.S. 

Looking at the Michigan cities with at least 100 NFIP policyholders, the average cost of flood insurance is as high as $2,567 in East Lansing, and as low as $516 per year in Farmington. 

Here’s a look at the average cost of flood insurance in Michigan cities with at least one active FEMA flood insurance policy.

Your flood insurance costs are generally calculated based on the following factors:

  • Your home’s location

  • Your home’s age, size, and construction type

  • Your home’s elevation

  • Your policy deductible amount

  • The amount of coverage in your policy

In addition to the above factors, the amount you pay for flood insurance will also depend on how your flood insurance provider calculates your rates.

Cheapest Michigan cities for flood insurance

Of the Michigan cities and towns with at least 100 NFIP policyholders, here are the 10 with the cheapest average flood insurance premiums.

CityAverage annual cost
New Buffalo$353
Saugatuck$681
Trenton$709
Detroit$731
Spring Lake$744
Ira$764
Saginaw$771
Bay City$776
Luna Pier$863
Clay$874

Most expensive Michigan cities for flood insurance

Here are the 10 most expensive cities and towns in Michigan for flood insurance for communities with at least 100 policyholders.

CityAverage annual cost
East Lansing$2,567
Lansing$2,470
Flat Rock$1,599
Troy$1,555
Meridian$1,470
Taylor$1,443
Hamburg$1,305
Gibraltar$1,287
Redford$1,273
Kawkawlin$1,263

NFIP flood insurance rates are going down in Michigan

Flood insurance in Michigan is expected to get more affordable under Risk Rating 2.0 — the NFIP’s new method for calculating rates. Roughly 56% of active flood insurance policies saw an average rate decrease of $598 when the new rates went into effect in April 2022.

Flood insurance rates by flood zone in Michigan

Flood insurance rates in Michigan will generally vary depending on where you live and whether or not your house is in a FEMA flood zone, which it determines based on the likelihood of flooding over a period of time. Any A or V zone, for example, has at least a 1% chance of flooding during any given year. Also referred to as a “100-year flood plain,” these areas have the highest flood risk, according to FEMA flood maps. 

Here are the average flood insurance rates in areas with a high risk, moderate to low risk, and undetermined risk, according to an analysis of NFIP premium data. [2]

Flood zoneAverage annual cost
High risk (A or V)$1,885
Moderate to low risk (B, C, or X)$610
Undetermined risk (D)$830

How to find out if your home is in a high-risk flood zone

To find out if your current or future house is in a FEMA-designated flood plain, consult the agency’s Flood Map Service Center. These maps can help you make an informed decision about where to live, what to build, and can help you determine whether or not you’ll need flood insurance.

What does flood insurance cover in Michigan?

Flood insurance helps cover the cost of flood damage to your home and belongings. That means if your house is damaged due to lake flooding, a river overflow, or any source of natural flooding, flood insurance can pay to repair or replace your property. 

A standard flood insurance policy through the NFIP comes with two main coverages that can be purchased together or individually.  

  • Building property coverage: Pays to repair or rebuild your house or garage if they’re damaged in a flood. The maximum building property coverage limit with the NFIP is $250,000, meaning that’s the most the NFIP will reimburse you for repairs, regardless of the damage amount.

  • Personal property coverage: Pays to repair or replace your belongings if they’re damaged in a flood. This includes your furniture, electronics, clothes, and any other items you own. The maximum personal property coverage limit with the NFIP is $100,000.

Each coverage also comes with its own separate out-of-pocket deductible, which is the amount you’re responsible for paying on each claim. Choosing a higher deductible will lower your flood insurance premium, but it will also reduce your claim payment.

Covered by NFIP flood insurance

  • Your home’s structure, including electrical and plumbing systems

  • Built-in appliances like refrigerators and dishwashers

  • Personal belongings like clothing, furniture, and electronics

  • Expensive valuables (up to $2,500)

  • Detached garages 

  • Debris removal

Not covered by NFIP flood insurance

  • Home or personal property damage caused by mold, mildew, or moisture

  • Currency, precious metals, and valuable papers

  • Belongings outside of your home, such as trees, plants, decks, hot tubs, etc

  • Any belongings in your basement

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How to buy flood insurance in Michigan

Michigan residents can buy flood insurance in one of two ways: through the NFIP, which is regulated and backed by the federal government and sold by insurance companies, or private flood insurance.

Private flood insurance vs. NFIP coverage

Private flood insurance generally gives you the option for higher coverage limits beyond the relatively low $250,000/$100,000 in coverage you’re limited to with the NFIP. 

Additionally, private flood policies include coverages and perks that aren’t available through the heavily regulated NFIP. This includes loss of use coverage to help cover the cost of lodging or restaurant meals in the event your house is badly damaged and you’re forced to evacuate; or replacement cost coverage for your personal belongings. 

Here’s a look at what Michigan residents can expect with NFIP and private flood insurance.

NFIPPrivate flood insurance
Maximum home rebuild limit$250,000Typically up to $500,000 or higher
AvailabilityMost Michigan countiesMay be limited in high-risk areas
Waiting period30 daysAs little as 2 weeks
Accepted by mortgage lendersYesYes
Replacement cost building coverageYesYes
Replacement cost contents coverageNoYes
Loss of use coverageNoYes
Loss avoidance coverage (sandbags, etc.)NoYes
Debris removal coverageYesYes

Flood insurance helps fill an important coverage gap

Most homeowners insurance policies do not cover water damage caused by flooding, so if you live in a flood-prone area of Michigan, particularly in Monroe, Wayne, or Macomb counties, you should consider purchasing flood insurance.

Do I need flood insurance in Michigan?

While you aren’t legally required to buy flood insurance in the Great Lakes State or anywhere else in the country, if your home is one of the approximately 366,735 Michigan housing units in a FEMA-designated high-risk flood zone, your mortgage lender may require it as a stipulation in your loan agreement. 

But even if your lender doesn’t require it, homeowners in flood-prone areas of Michigan will want to consider this important piece of financial protection. While only around 7% of Michigan homes are located in Special Flood Hazard Areas (SHFAs), around 25% of all flood insurance claims come from moderate- to low-risk areas, according to FEMA. [3]

Here’s a look at the total number of housing units and the percentage of all homes in high-risk flood zones for each county in Michigan.

Regardless of which flood zone you live in, you’ll want to make sure you’re finding the best flood insurance at the most affordable rate. For the best flood insurance policy comparison, consider comparing both NFIP and private flood insurance plans with Policygenius. 

Our team of licensed insurance agents at Policygenius can help you compare policies and find the best option for you. Click the calculator to get started.

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References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our

editorial standards.
  1. Risk Factor

    . "

    Does Michigan have risk?

    ." Accessed July 01, 2022.

  2. Federal Emergency Management Agency

    . "

    Flood Insurance Data and Analytics

    ." Accessed July 01, 2022.

  3. Federal Emergency Management Agency

    . "

    Low Risk Flood Zones?

    ." Accessed July 01, 2022.

Corrections

No corrections since publication.

Author

Managing Editor & Licensed Home Insurance Expert

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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Pat Howard is a managing editor and licensed home insurance agent at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

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