Does How My Home Was Built Affect My Flood Insurance Rates?

If you're asking, “Does how my home was built affect my flood insurance rates?” — the short answer is yes, absolutely.

The way your home was constructed plays a major role in how flood risk is assessed and how much you’ll pay for coverage. From foundation type to elevation to construction materials, insurers evaluate specific structural features when determining your premium.

Let’s break down exactly how your home’s construction impacts your flood insurance rates.

1. Foundation Type

Your home’s foundation is one of the most important factors in flood insurance pricing.

Common foundation types include:

• Slab-on-grade

• Crawlspace

• Basement

• Elevated (piers, pilings, stilts)

Homes with basements typically carry higher flood insurance premiums because basements are more vulnerable to flood damage. Water naturally flows to the lowest point, and below-grade spaces increase potential loss.

Elevated homes—especially in coastal areas—often receive lower premiums because they’re designed to allow floodwaters to pass beneath the structure.

2. Elevation Relative to Base Flood Elevation (BFE)

Flood insurance rates are heavily influenced by how your home’s lowest floor compares to the Base Flood Elevation (BFE) — the height floodwaters are expected to reach during a 1% annual chance flood event.

The Federal Emergency Management Agency (FEMA) establishes these elevations.

• Below BFE → Higher premium

• At BFE → Standard premium

• Above BFE → Lower premium

Even a difference of one or two feet can significantly impact your rate. An elevation certificate can help document your home’s height and potentially lower your premium.

3. Year Your Home Was Built

The construction date matters more than most homeowners realize.

Homes built before updated floodplain regulations may not meet modern flood-resistant building standards. These properties often face higher premiums because they were not designed with current risk mitigation practices in mind.

Newer homes built to current floodplain management standards may qualify for more favorable rates.

4. Building Materials and Construction Type

Flood insurance pricing also considers:

• Frame vs. masonry construction

• Type of siding

• Roofing materials

• Water-resistant building components

Masonry homes may perform differently in flood conditions than wood-frame homes. While no material is flood-proof, some construction types may reduce structural damage risk, which can influence pricing.

5. Enclosures Below Elevated Homes

In coastal and high-risk flood zones, homes are often elevated on pilings. However, enclosed areas below the elevated living space can affect insurance costs.

Finished living space below the elevated floor increases potential damage exposure, which can raise premiums.

Flood-compliant enclosures with proper flood vents are typically rated more favorably than finished or non-compliant spaces.

6. Utilities and Mechanical Systems Placement

Where your home’s utilities are located matters.

If HVAC systems, electrical panels, water heaters, and appliances are installed below the BFE, the risk of damage increases — and so can your insurance cost.

Elevating utilities above expected flood levels may help reduce premiums and protect your home from costly repairs.

7. Flood Openings and Vents

Proper flood vents allow water to flow through enclosed areas instead of building pressure against walls.

Homes without compliant flood openings in certain flood zones may face higher premiums. Installing engineered flood vents can improve compliance and potentially lower rates.

8. Coverage Under Risk Rating 2.0

Under FEMA’s updated pricing methodology known as Risk Rating 2.0, flood insurance rates are calculated using more detailed property-level data.

The National Flood Insurance Program (NFIP) now evaluates:

• Foundation type

• Elevation

• Distance to water sources

• Construction characteristics

• Historical loss data

This means your home’s specific design and build features play a bigger role in determining your premium than ever before.

How to Potentially Lower Your Flood Insurance Rates

If your home’s construction is driving up your premium, you may have options:

• Obtain or update an elevation certificate

• Elevate utilities above BFE

• Install proper flood vents

• Retrofit enclosed areas

• Review coverage limits and deductibles

• Explore private flood insurance alternatives

Even small structural improvements can sometimes lead to meaningful savings.

The Bottom Line

Yes — how your home was built absolutely affects your flood insurance rates.

Insurers assess flood risk based on:

• Elevation

• Foundation type

• Year built

• Construction materials

• Structural compliance

If you’re unsure how your home’s design is impacting your premium, a flood insurance specialist can review your property details and identify potential savings opportunities.

Understanding your home’s construction isn’t just helpful for compliance — it’s one of the most important factors in controlling your flood insurance costs.