Flood Insurance Coverage in Florida and What's Covered

Florida is a beautiful state with a lot to offer, but it's also known for its high exposure to storms and low elevation. As a homeowner in Florida, it's important to protect your property from potential flood damage. In this article, we'll discuss the cost of flood insurance in Florida and how coverage works.

Average Cost of Flood Insurance in Florida

The average cost of flood insurance in Florida is $910 per year for a policy from the National Flood Insurance Program (NFIP). Flood insurance rates can range from $109 per year to more than $3,000, depending on a number of factors specific to your home. Some of the most important factors are your home's elevation, building materials, and distance to the coast.

Do I Need Flood Insurance in Florida?

Flood insurance isn't required by the state of Florida, but your mortgage lender may require you to buy a policy, especially if you're in a high-risk flood zone. Homeowners and renters insurance policies don't cover flood damage, even in the case of storm surge or wind-driven water that floods properties. If you don't have coverage and a storm hits, you'll likely have to pay to fix the damage and replace your stuff.

Factors That Affect the Cost of Flood Insurance in Florida

Each company uses different variables to determine how much you'll pay for flood insurance. Recently, FEMA and the NFIP began using a system called Risk Rating 2.0 to calculate flood insurance rates. Before Risk Rating 2.0 was created, flood insurance rates were based on your home's flood zone. Risk rating 2.0 uses 24 factors to determine your flood insurance rates, including:

• The amount of coverage you need
• The deductible you choose
• Your home's elevation
• Building materials
• Distance to the coast

The amount of coverage you need and the deductible you choose will also play a role in your flood insurance rate.

Flood Insurance for Citizens Insurance Customers

If you're a homeowner with Citizens Insurance, you're required to buy flood insurance, even if you're not in a high-risk zone. This requirement was a part of a bill passed by the Florida legislature in December 2022. The requirement is rolling out in stages, so some people will need coverage sooner than others.

The first group of homeowners who will need flood insurance is those living in a special flood hazard area (SFHA). This refers to people living in flood zones that start with A or V. These zones are typically located close to the coast or a large body of water. Most of these homeowners are already required to have a flood insurance policy by their mortgage company.

Citizens customers who don't want to buy flood insurance should shop around for a different home insurance company before the deadline for your home.

How to Get Flood Insurance in Florida

You can buy NFIP flood insurance from most Florida home insurance companies and agents. You should ask your current homeowners or renters insurance company for coverage if you'd like an NFIP policy. The NFIP is a government-backed program, which means its rates are the same regardless of where you buy coverage.

In the last few years, Florida has made it easier for companies to offer private flood insurance as an alternative to the NFIP. Some private flood insurance companies also offer coverage more quickly. Coverage may start in as few as three days after you buy a policy. In comparison, an NFIP policy typically has a 30-day waiting period before coverage kicks in.

In addition, a private flood insurance policy may offer you higher coverage limits. That means you could get more comprehensive coverage if your house costs more than $250,000 to replace. However, private flood insurance companies can cancel your policy if they decide your home is too risky to protect.

How to Find Cheap Flood Insurance Quotes in Florida

To find the best flood insurance rates, you should compare quotes from the NFIP and private flood insurance companies. Private flood insurance is typically around the same price, or cheaper than, the NFIP. There are a few other ways you can save on Florida flood insurance:

• Raise your deductible
• Bundle your policies
• Install flood-resistant features in your home

What Does Flood Insurance Cover in Florida?

Flood insurance from the NFIP has a maximum of $250,000 of dwelling coverage. This coverage helps pay to repair or rebuild your home if it's damaged by flood water. Private flood insurance companies tend to offer higher coverage limits than the NFIP. They may also have extra coverage options you can add on for more protection.

If your home would cost more than $250,000 to rebuild or you have valuable belongings, you may be better off with a private flood insurance company. NFIP policies also protect up to $100,000 worth of personal belongings. The NFIP doesn't cover some parts of your property. This is usually because they are more likely to be damaged by flood water.

Conclusion

Flood insurance is a good idea for homeowners in Florida, even if it's not required. With the right coverage, you can protect your property and belongings from potential flood damage. By comparing quotes from different providers and taking steps to reduce your risk, you can find affordable flood insurance that meets your needs.