Does every house in Florida need flood insurance?
Whether you're required to buy flood insurance in Florida depends on your insurance company and where you live. If you have a mortgage and your home is in a “Special Flood Hazard Area” (SFHA) as designated by the federal government, your lender will likely require you to buy flood insurance.
Flood insurance may help pay to repair or rebuild your home and replace damaged personal property. Florida law does not require homeowners to have flood insurance. However, for most consumers, your home is one of your largest assets and insurance will help to offset the cost to repair or replace your home.
How many Floridians do not have flood insurance? The AAA survey also reported that over 67% of Floridians do not have flood insurance. But in 2022, the National Flood Insurance Program validated more than 54,000 claims and dished out more than $1.6 billion in policy coverage.
Even if Florida holds the most NFIP policies, the vast majority of its residents are still uninsured for floods; Triple-I found that only 18 percent of Floridians carry flood insurance, whether from the NFIP or a private carrier.
If your home is located in a Special Flood Hazard Area (SFHA) in which flood insurance is available under the National Flood Insurance Act (NFIA), then any federally regulated lender will require you to purchase flood insurance before you get a mortgage.
(Zones A and V)
Zones FEMA has mapped as areas of high flood risk. Properties located in A and V flood zones have a 1% or greater chance of flooding in any given year, and a 26% chance of flooding over a 30-year mortgage.
The average cost of flood insurance in Florida is $628 per year. This cost is based on the number of flood-prone areas in the state and individual property risks. Premiums may vary depending on your state and country, but they are usually more expensive in moderate-risk or high-risk flood zones.
Starting in January 2024, all structures with a replacement value of $600,000 must obtain flood insurance. The value requirement of the structure drops until 2027, when all Citizens-covered structures, regardless of value, must maintain flood coverage.
The risk of flooding is reduced but not completely removed. Even if you live in a moderate-to-low-risk zone, it's recommended that you purchase flood insurance.
Lake City has a low risk of flooding and being hit by tropical storms, according to Terra Frma. Located between Jacksonville and Tallahassee near the intersection of Interstates 10 and 75, Lake City had a 2021 population of 12,497. Sanford on Lake Monroe is located about 20 miles north of downtown Orlando.
Why is there no flood insurance in Florida?
In Florida, flood risk is higher due to the state's frequency of storms and proximity to water. Despite this, most insurance policies do not cover flooding. Don't make assumptions: check your policy before it's too late.
The many canals of Cape Coral and coastal location make it the most flood-prone town in Florida. The canal-laden Cape Coral has an elevation of three feet above sea level and sits near the Gulf of Mexico. Covered with mangroves, Cape Coral is a relaxing and beautiful place to live on the water — when it's not raining.
| Rank | State | Number of NFIP policies, November 2023 |
|---|---|---|
| 1 | Louisiana | 454,955 |
| 2 | Florida | 1,710,539 |
| 3 | Hawaii | 55,565 |
However, homeowners will be required to buy flood insurance if they take out a mortgage from a lender that is federally regulated or insured (such as an FHA mortgage) and buy a home in a high-risk flood zone (also known as a Special Flood Hazard Area).
To purchase flood insurance, call your insurance company or insurance agent, the same person who sells your home or auto insurance. If you need help finding a provider go to FloodSmart.gov/flood-insurance-provider or call the NFIP at 877-336-2627.
Do you need flood insurance in Flood Zone AE? Yes, homeowners in this flood zone must get flood insurance, and not just because they face a high risk for floods. The area is subject to mandatory purchase requirements, so federally-backed or regulated lenders can only offer mortgages to homeowners who have a policy.
Obtain or review the flood map for your area. You can get your overall flood risk at www.floodsmart.gov and enter your address.
FEMA's high-risk flood zones – those that make up the SFHA – are those that begin with the letters “A” or “V.” Homeowners located in A or V zones are required to purchase flood insurance if they have a mortgage from a federally-backed or federally-regulated lender.
Determining if your property is located in a flood zone is easy and cost-free. The government offers online flood maps for property owners to review. These maps show which areas are prone to flooding at different water levels.
Sinkhole insurance typically costs between $2,000 and $4,000 each year in Florida, depending on which insurance provider you use.
Who provides flood insurance in Florida?
Most flood insurance policies currently providing coverage in Florida are underwritten by the National Flood Insurance Program (NFIP). The NFIP is managed by the Federal Insurance & Mitigation Administration which is a part of the Federal Emergency Management Administration (FEMA).
FEMA'S new formula uses ground elevation, height of the first floor, foundation type and other factors to assess risk based on factors unique to individual homes. The new formula aligns prices to actual flood risk, which should reduce rates for some and raise rates for others – and it is.
Florida governor Ron DeSantis has announced his proposed $114.4 billion budget for 2024, including a $409 million allocation aimed at easing property insurance premiums. DeSantis' proposal calls for a one-year exemption on taxes, fees, and assessments that would target homeowners with properties valued up to $750,000.
Florida Gov. Ron DeSantis' proposed 2024 budget includes a bit of relief for homeowners who have experienced double-digit rate increases in the past few years. The governor has proposed a one-year exemption on property insurance taxes, fees, and assessments for homeowners with property valued up to $750,000.
Senate Bill 2A. Establishes the Florida Optional Reinsurance Assistance (FORA) Program for the 2023 hurricane season, which: Provides optional hurricane reinsurance that insurance companies can purchase at reasonable/near market rates.
