(800) 253-1482How Much Does Flood Insurance Cost in Tennessee?
Summary: > Flood insurance is offered by FEMA and private companies in Tennessee. Both homeowners and renters need protection, as standard home and renters insurance policies don’t cover flood damage. Disaster aid is often insufficient, making flood insurance a better option for protection. While not legally required, flood insurance may be mandatory if your lender requires it, though this may be waived if you have a Letter of Map Amendment (LOMA). Although FEMA Finished Construction Elevation Certificates are no longer required, they can help reduce insurance costs. Compare quotes from both private and government options to find the best coverage and savings. Estimated Read Time: 4 mins
Flood insurance in Tennessee typically costs homeowners between $1,000 and $1,600 per year, depending on factors like your home’s size, age, materials, flood zone, coverage needs, and deductible.
For renters, your policy may be less expensive as you’ll only need coverage for your personal property
Flood damage is a serious risk in the Volunteer State, and both homeowners and renters need to be prepared.
Since regular home and renters insurance policies don’t cover floods, having flood coverage is essential, especially with changing weather patterns and a growing population.
You can get coverage through private insurers or FEMA’s National Flood Insurance Program (NFIP), which can help you restore your property even without a federal disaster declaration.
Comparing flood insurance rates can help you find the best coverage and save on premiums. To get a quote, use the tool below to compare private and government coverage options quickly.
Facts About Flood Insurance in Tennessee
Understanding your options for flood insurance in Tennessee is the first step to finding reliable coverage and saving on premiums.
The National Flood Insurance Program (NFIP), run by FEMA, allows homeowners, business owners, and renters in participating Tennessee communities to buy federally-backed flood insurance.
If you rely on disaster assistance, you may be left with less money than you need, considering grants average under $8,000 after a flood.
Furthermore, you’re not guaranteed to qualify for federal aid even after a disaster is declared.
The NFIP doesn’t look at flood history and can help you restore more with higher policy limits than FEMA grants in most cases.
Additionally, private flood insurance options are also available. These policies may offer lower rates and more coverage for your property.
Finally, homeowners insurance in Tennessee won't cover flood damage, nor will a renters policy. You'll need flood coverage for protection.
Tennessee Emergency Management Agency (TEMA) and Participating Communities
In Tennessee, 400 communities participate in the NFIP by adopting floodplain management rules to reduce flood damage.
The TEMA oversees the NFIP in the state, but each local community is responsible for enforcing these rules, issuing permits, and keeping records.
If your community is part of the NFIP, you can buy flood insurance even if you've never had a flood.
However, some areas in Tennessee don't participate, which means FEMA assistance isn't available.
If NFIP coverage isn't offered where you live, ask your insurance agent about private flood insurance, which may be a better option for protecting your property.
Remember to compare policies and check for waiting periods, as flood insurance policies typically have a 30-day wait before they take effect.
This further highlights the importance of protecting yourself from flooding sooner rather than later by comparing the policies available in your area.
Flood Prone Areas in Tennessee
All homes face some risk of flooding, but certain areas of the state are more prone to major events.
For example, the Upper Tennessee Valley is especially vulnerable due to its location between the Smoky Mountains and the Cumberland Plateau.
The Nashville Flood of May 2010 saw up to 20 inches of rain, causing the Cumberland River to reach nearly 52 feet, its highest level since 1937.
Another significant flood occurred in April 2011 when storm systems and spring snowmelt caused the Mississippi River and its tributaries to hit record levels.
This flooding damaged or destroyed homes and businesses along the Mississippi River in Tennessee, resulting in hundreds of millions of dollars in damage.
When calculating the cost of flood insurance, keep in mind that where your home is located is going to be the largest factor affecting your premiums.
Factors That Affect Your Flood Risk and Premium
When you look at flood insurance costs in Tennessee and risk, you’ll find that they are closely related.
For the most part, homes in high-risk flood zones or near water are going to pay higher premiums than those in low-risk areas and vice versa.
However, your premiums are affected by much more than where your home is located, including the amount of coverage you need, who you get your coverage from, your deductible, etc.
The elevation of your utilities and contents also plays a role.
FEMA’s Risk Rating 2.0 system considers additional variables such as flood frequency, different types of floods like river overflow and storm surge, proximity to water, and property elevation.
While Elevation Certificates (ECs) are no longer required, submitting one might lower your insurance costs and help with floodplain management and eligibility for discounts.
FEMA Finished Construction Elevation Certificates
If a home or business is in a high-risk flood area, an insurance agent may need a FEMA Finished Construction Elevation Certificate to determine the flood insurance premium.
This certificate shows how your building's elevation compares to the base flood level, which helps determine your flood risk and insurance cost.
Again, while no longer strictly required, ECs can prove helpful by helping you save money on flood insurance while protecting your home.
A licensed Tennessee surveyor must complete the EC, and you can get copies by contacting your local floodplain administrator. The State NFIP Office doesn’t keep these certificates due to storage limitations.
Required Flood Insurance
In some cases, homeowners may be required to maintain flood insurance in Tennessee.
Specifically, for federally regulated or insured mortgages for homes in high-risk flood areas, you must have a flood policy in place.
The exception to this is if a Letter of Map Amendment (LOMA) shows your property is above the base flood elevation. In this case, your lender might waive the requirement for flood protection.
Regardless of where you fall on a flood map, you’ll still need to consider coverage, even if it’s not required.
Around 40% of all flood-related claims are from people affected living in areas of low risk.
It’s always important to check your lender’s terms to better understand whether or not you need flood insurance, however, all homeowners and renters should assess their risk and protect against the unpredictable.
What Does the National Flood Insurance Program in Tennessee Cover?
There are two types of coverage that make up flood insurance through the NFIP. Both combine to protect your home and personal property all in one:
- Building Coverage: If you’re a homeowner, you’ll receive up to $250,000 worth of protection against flood damage to your home’s structure. This includes your foundation and walls along with permanently installed features, and home systems, like air conditioning or plumbing.
- Contents Coverage: Both homeowners and renters can receive up to $100,000 in coverage for their personal property.
Private Flood Insurance in Tennessee
If you don't want NFIP coverage, you’re in luck. Residents of Tennessee can choose private flood insurance instead to receive coverage.
Private insurers may offer higher limits and faster coverage, so shopping these carriers is an important part of finding the right protection for your property.
However, there are important factors to consider when comparing government and private coverage options.
For example, switching back to NFIP after choosing private insurance could mean higher rates if you enroll.
Also, private companies might not cover all properties, like mobile homes or those with a history of floods.
NFIP policies are backed by the government, while private companies carry some risk, as carriers could face financial hardships or leave the state altogether.
Comparing both options helps ensure you're fully protected and paying the lowest premiums.
To determine which path is right for you, compare multiple carriers with the NFIP to find the right flood insurance in Tennessee. Get a free flood insurance quote in just a few clicks or by using the tool above.
