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With recent reports from the National Weather Service that flooding is a strong possibility in various parts of the country, FEMA is saying that it's time to sign up for flood insurance now. Because of the steps it takes to secure the insurance coverage, FEMA advises that if you need it, now's the time to get the ball rolling.

Why Signing Up for Flood Insurance is Important

Many don't realize that flood damage is not covered in a homeowners insurance policy. This results in an unfortunate financial surprise when a flood destroys belongings or the home itself and they realize that their insurance company won't come to their rescue.

Signing up for flood insurance is usually handled through your current homeowners insurance company. While flood insurance prices for coverage vary, they can go as high as $3,000 per year.

The reason, FEMA (Federal Emergency Management Agency) asks that homeowners get their policies now is because it often takes around 30 days for the insurance to become effective.

Everyone Lives in a Flood Zone

One thing that FEMA wants homeowners to know is that just because they are not listed on a floodplain map as residing in a high-risk zone doesn't mean they're prone to floods. Any area could be flooded with a bad storm, which is why it's best to be prepared.

If you're not sure of the level of risk for the area in which you reside, visit FloodSmart.gov for more information.

Searching for an affordable and comfortable home to buy is part of the American Dream. When it comes time to crunch the numbers to determine how much home you can afford, it is imperative that home insurance expenses are included in your budget. The average cost for home insurance is $822 annually, however depending on what state you live in, you may end up paying significantly more than the rest of the nation.

Homeowners tend to be concerned about dramatic events like mudslides, floods and earthquakes wiping out the roofs above their heads. Although those are all legitimate concerns requiring proper insurance coverage, that type of protection is generally sold as additional riders and not included standard home insurance policies.

In reality, it is common weather systems such as wind, rain, hail, tornadoes and hurricanes that cause a vast quantity of insurance claims. By combining those factors with rates, real estate values, the cost of rebuilding, the type of construction and location of the property, the end results are the premiums consumers' pay.

According to statistics provided by the National Association of Insurance Commissioner (NAIC) released in December 2009 (2007 Homeowners Insurance Report) the top five most expensive states for home insurance and their average annual home insurance premium are:

Florida: $1,534

Oddly enough, a place nicknamed the "Sunshine State" has a long history of powerful rainstorms. The region is prone to devastating hurricane activity and by nature, is a high-risk state, making securing coverage there challenging.

Not only is Florida the location of the highest home insurance rates nationally, some insurers are no longer offering policies in the area.

Texas: $1,448

Everything is bigger in Texas and that includes home insurance premiums. The largest contributing factors to the escalated insurance costs in the Lone Star include hurricanes, tornadoes, hail, wind storms and earthquakes.

It is important to note that according to the NAIC, Texas is unique in comparison to any other market because the standard homeowners policy in town is slightly different from policies across the nation.

Louisiana: $1,400

Home insurance rates rose in Louisiana after Hurricanes Katrina and Rita blew through the state. Not only did insurers up the premiums because of the weather risk factors, but they also upped the insured value of homes on people's policies.

Within the region, the highest home insurance premiums are paid by homeowners in New Orleans.

Washington, D.C.: $1,089

Although not a state, Washington, D.C. has a well-earned place on this list. Because the area is the hub of our nation's government, insurers consider it to be a high-risk terrorist location. Combine the fear factor with a huge population, unstable buildings and a higher than average cost for rebuilding, residents will pay more to for their home insurance.

Oklahoma: $1,054

The volatile activity of tornadoes combined with the frequency of hail and wind in state, is what causes the home insurance rates to be one of the highest in the nation.

In an especially cruel twist of fate for residents of the OK state, both property values and per capita incomes are well below the nation's average.

On the flip side of the coin, Idaho ($422), Wisconsin ($491) and Utah ($505) have the lowest insurance rates in the nation.

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