Rates are based on a variety of factors, such as the flood zone, date of construction, history of flood claims, elevation of the property, and home improvements made to mitigate future damage. The average flood insurance premium is around $500 per year. If you live in an area of moderate to low flood risk, you may be eligible for a Preferred Risk Policy with rates as low as $119 a year. Flood insurance rates are federally set and will not differ between one insurance company and another.