Severe floods have become an annual experience in Imo State inflicting losses of lives and property on the population. The most affected areas are Oguta, Ohaji/Egbema and Owerri. This situation notwithstanding, most homeowners in these areas have not taken advantage of flood insurance facility. This study attempts to identify the factors affecting homeowners' flood insurance purchase decisions in Oguta, Ohaji/Egbema and Owerri, and to apply discriminant analysis technique on those factors to determine whether or not there are significant differences in perception between those willing to purchase flood insurance and those not willing. The study equally seeks to determine the variables that best account for the differences in perception between the two groups. Tests using Wilks’ lambda, eigenvalues, canonical correlation, functions at group centroids, and classification accuracy were applied on identified sets of relevant determinants. The study found that those willing to purchase flood insurance were more concerned with the mitigation of flood catastrophe, apparently because they are worst hit by the floods, while those who were not willing were more indifferent as they appear to be less certain and aware of flood insurance. However, the variables with the most predictive power in accounting for the differences in perception and have the highest impact were found to be within the measures of behavioral, attitudinal and emotional determinants. The study therefore concludes that the likelihood of purchasing flood insurance in the study areas depends greatly on information availability, consumers’ insurance literacy and level of trust on the integrity of insurance companies.