Florida is known as the sunshine state, home to roughly 23 million residents.
Yet, being the tropical paradise that it is, there are more than 1,000 miles of coastline, numerous rivers, and frequent rainfall, making it easily prone to flooding.
If you live in Florida, you know that hurricane season is no joke, and being prepared for the next storm is crucial.
With recent legislative updates and new FEMA rating systems, flood insurance is now a crucial consideration for homeowners across the state.
This guide breaks down everything you need to know about Florida’s potential new flood insurance requirements, who’s affected, and how to ensure your property is properly covered.
Who is Required to Have Flood Insurance in Florida?
Currently, a number of Florida residents are required to have flood insurance, while others obtain it regardless of requirements for added peace of mind and security.
You might be required to have flood insurance if you:
- Live in a high-risk Florida flood zone
Those living in areas with at least a 1% chance of flooding each year are required to purchase flood insurance because these areas are considered high-risk Florida flood zones.
- Have a federally-backed mortgage
This includes FHA loans, VA loans, second mortgages, home equity loans, home improvement loans, construction loans, commercial loans, and farm credit loans.
- Received federal disaster assistance
This includes grants from the Federal Emergency Management Agency (FEMA) and low-interest disaster loans from the U.S. Small Business Administration (SBA).
- Have a private mortgage and live in a flood zone
If you have a mortgage and live in a flood zone, most mortgage companies and banks will require it.
Considering flood insurance? Get a quote from one of our agents today.
Recent Flood Insurance Changes
Flood insurance requirements and costs have changed significantly in recent years due to new federal and state regulations, as well as FEMA’s updated Risk Rating 2.0.
This rating system, introduced in 2021, recalculates flood insurance premiums based on individual property characteristics, including elevation, flood history, and proximity to water sources.
Under Risk Rating 2.0, many Florida homeowners are experiencing premium adjustments, as rates are now more closely tied to actual risk.
What Type of Flood Insurance Do You Need?
The amount of flood insurance required depends on your flood risk.
Speaking to an insurance agent can be beneficial to help you determine what level of insurance is required.
What Flood Insurance Covers in Florida
Flood insurance is designed to cover water damage from flooding that starts at ground level and seeps or flows into your home.
This includes damage from rising water sources such as rivers, lakes, storm surges, heavy rain runoff, and other natural events that cause ground flooding. Covered items typically include:
- Structural Components: Foundations, walls, floors, electrical and plumbing systems, and HVAC systems.
- Essential Appliances: Such as refrigerators, stoves, washers, and dryers.
- Personal Property: Items like furniture, clothing, and electronics (although this may have coverage limits and restrictions based on storage location).
- Debris Removal: Costs related to removing debris after a flood may also be covered.
What Flood Insurance Doesn’t Cover in Florida
Flood insurance excludes damages caused by water intrusion from sources that don’t originate from ground-level flooding. This includes water damage from:
- Roof Leaks or Rain Damage: Flood insurance won’t cover damage from rain entering through roof damage or from issues like clogged gutters.
- Gradual Seepage: Water that seeps into the home slowly over time or due to poor maintenance is generally not covered.
- Non-Covered Areas: Most policies exclude basements, decks, patios, fences, landscaping, swimming pools, and outdoor furniture from flood insurance coverage.
Understanding these distinctions can help homeowners in Florida ensure they have comprehensive protection by adding homeowners insurance, windstorm insurance, or additional riders where needed.
What Percentage of Floridians have Flood Insurance?
FEMA refers to Florida as the most flood-prone state in the entire U.S., yet it is estimated that only about 20% of Floridians are covered with flood insurance.
After hurricane Milton battered through the west coast of Florida, it was estimated that only 23% of residents had flood insurance.
How Much Does Flood Insurance Cost in Florida?
The cost of flood insurance in Florida varies.
For homes in low- to moderate-risk areas, costs typically range between $400- $700 annually.
In high-risk flood-prone zones, rates can increase significantly, ranging from $1,000 to $4,000 or more per year.
Again, rates are based on factors like elevation, flood history, and proximity to coastlines and other water sources.
To get a better idea of what it would cost for your property, call Florida 1st for a quote today!
Who Provides Flood Insurance in Florida?
Florida 1st Insurance is a trusted provider for flood insurance in Florida, offering a range of policies that can help safeguard your property from the devastating effects of flooding.
With years of experience serving Floridians, Florida 1st understands the unique risks homeowners face and can help you find a flood insurance policy that fits your needs and budget.
Whether you’re required by law to have coverage or you’re seeking additional protection, Florida 1st is here to guide you through the process, ensuring you have the right level of coverage for your home.
For more information or to get a personalized quote, contact Florida 1st Insurance today and make sure your home is properly protected from the next storm.
Remember, flood insurance policies typically take around 30 days to go into effect.
Safeguard your home today!