Flood insurance prices going down for most Utahns but up for most Americans, study finds

Sep 21, 2021, 11:09 PM

SALT LAKE CITY — Utah has seen some big floods in places that don’t typically flood.

For example, last August, expensive Salt Lake City homes, that are not in a “flood zone,” ended up with water in the basement after a massive storm overwhelmed the city drainage system.

Unique storms are becoming less unique around the country, and now, the federal agency that sells flood insurance is adapting.

On Oct. 1, 2021, FEMA is launching what it calls “Risk Rating 2.0.”

The goal is to make pricing more equitable.

“You are having some places, specifically like Utah, that are paying more money for flood insurance than they should be,” said Nick VinZant with LendingTree’s QuoteWizard.

VinZant has been analyzing what the change will mean for the price consumers pay, and he shared his data with the KSL Investigators.

Right now, the average cost of flood insurance in Utah is $730 per year.

Next month, 53% of policyholders will see a price decrease and 47% will see their costs go up — some as much as $20 per month — according to the data.

Nationally, the cost is going to go up for 77% of flood insurance policies.

Until now, how much a homeowner has to pay for flood insurance has been based almost exclusively on FEMA flood maps that try to predict how likely your home is to flood.

Going forward, FEMA will factor in whether a home has actually flooded. If it has, that home would be considered a higher risk.

“The more flood risk someone is facing, they’re going to be paying higher prices, rather than everybody kind of balancing things out across the board,” said VinZant.

Perhaps the biggest change is that FEMA will now factor in the value of a home when deciding how much to charge for flood insurance.

“Lower value homes and neighborhoods are going to be paying less, and higher value homes and neighborhoods are going to be paying much more,” said VinZant.

A standard homeowner’s insurance policy does not cover flooding.

Most Americans do not have flood insurance. In a 2020 poll by the Insurance Information Institute, only 27% of people who have homeowner’s insurance said they had a flood insurance policy. That’s up from 13% in 2018.

KSL 5 TV Live

Local News

Jared M. Boyce, 27, of Springville, Utah (Kootenai County Sheriff's Office)...

Michael Houck

Utah Patriot Front member will be sentenced for child pornography charges

A Utah man who was arrested last year for his involvement with a white nationalist group in Idaho has admitted to possessing child pornography.

22 hours ago

The scene of the crash in Mexican Hat. (Utah Highway Patrol)...

Michael Houck

Driver killed in single-vehicle crash near Utah-Arizona borders

A driver was killed in a crash while crossing the San Juan River at the Mexican Hat bridge Friday afternoon.

22 hours ago

A member of the Salt Lake City Police Department’s SWAT Team speaks with a firefighter and a SLCP...

Michael Houck

Police take fugitive into custody after SWAT standoff in Sandy

A man wanted for aggravated assault and a domestic violence incident barricaded himself at a Sandy hotel Friday evening.

22 hours ago

Gabriela Sifuentes Castilla, the victim of who was shot and killed in October 2021....

Lauren Steinbrecher

Sister of murdered Utah radio show host ‘can finally sleep’ after suspect’s jailing

The sister of a Utah-based Spanish radio show host is sharing her relief that the justice system is moving forward after her sister was murdered more than a year and a half ago. 

22 hours ago

Salt Lake police reports about Utah neuropsychologist Parth Gandhi, who killed his 16-year-old son ...

Pat Reavy

Utah psychologist was under sex assault investigation at time of murder-suicide

Salt Lake police reports about Utah neuropsychologist Parth Gandhi, who killed his 16-year-old son in a murder-suicide, describe lengthy custody disputes of the boy and a sexual assault investigation underway at the time of Gandhi's death.

22 hours ago


Larry D. Curtis

Kamas orders residents to boil water, possibly for E. coli

Residents of Kamas in Utah's Summit County have been ordered to boil water for all uses.

22 hours ago

Sponsored Articles

Asian little girl playing arcade game on the computer machines at the shopping mall outlets...

Get Out Pass

Family Fun Activities in Utah You Have to Try This Summer

These family fun activities will entertain you all summer, so if you ever feel stuck in a rut wondering what to do, refer to this guide!

Woman IT specialist in elegant suit working on notebook computer in data center next to server rack...

Les Olson

Your Complete Guide to Outsourcing IT Services

This guide covers everything you need to know about the different benefits of outsourcing IT services to meet your small business needs.

diverse group of friends dance outside under string lights...

Lighting Design

5 Frequently Asked Questions About Outdoor Lighting

Read for the most frequently asked questions about outdoor lighting to help narrow the search for your home.

Stack of old laptops with dark background...

PC Laptops

Old Laptop Upgrades You Need to Try Before Throwing it Away

Get the most out of your investment. Try these old laptop upgrades before throwing it out to keep it running fast and efficient.

Happy diverse college or university students are having fun on their graduation day...

BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.

Close up of an offset printing machine during production...

Les Olson IT

Top 7 Reasons to Add a Production Printer to Your Business

Learn about the different digital production printers and how they can help your company save time and money.

Flood insurance prices going down for most Utahns but up for most Americans, study finds