The average consumer would assume that a state that sees a higher risk of floods would also see a higher average flood insurance cost. However, as research shows, that is not the case. The above slideshow highlights the 10 states — predominately located in the Northeast and Midwest — with the highest average flood insurance costs, according to research from Valuepenguin.com, which reported the national average cost of flood insurance is $734 annually. Higher average flood insurance costs in areas with perceived low flood risks are largely driven because of regions with voluntary flood insurance markets. Amanda Bryant, director of operations at National Flood Insurance LLC, explains: "Florida has a higher percentage of homes in FEMA-designated flood zones, of course, but we also have more flood awareness among property owners and experience more direct flood threats, such as hurricanes, which means more voluntary policies." Since the rates on voluntary flood insurance have been kept low, those policies pull the premium average down, she tells PropertyCasualty360.com, adding that 24% of residential housing units in Florida, as an example, carry flood insurance. In comparison, only 1% of Pennsylvania and Vermont homes do. "Because of the widespread erroneous belief that properties in FEMA-designated low-to-moderate risk areas (zones X, B, and C) do not flood, property owners generally do not purchase flood policies in these areas," Bryant says. "Flood insurance is only mandated in zones A and V, FEMA's Special Flood Hazard Areas." Related:

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