Big changes are coming for Citizens Property Insurance Corporation customers in 2023. Starting April 1, 2023, new policyholders seeking Citizens insurance coverage in areas marked as special flood hazard areas by FEMA will be required to have flood insurance coverage before being eligible for a Citizens policy. This rule applies to existing customers as well, who must have flood insurance to renew their existing Citizens policies starting July 1, 2023.
Having flood insurance coverage helps protect policyholders from the devastating effects of this disaster and ensures insurance carriers are ready to help their customers recover from any costly damages caused by flooding. Taking proactive steps like buying flood insurance can make all the difference in maintaining financial security during a crisis.
Existing policyholders will begin being phased in, in this order:
- January 1, 2024, for policies insuring property to a limit of $600,000 or more.
- January 1, 2025, for policies insuring property to a limit of $500,000 or more.
- January 1, 2026, for policies insuring property to a limit of $400,000 or more.
- January 1, 2027, for all other policies.
WHY ARE THESE CHANGES BEING MADE?
The reason for these changes is simple: when it comes to flooding, Florida is one of the most vulnerable states in the country.
Hurricanes and other types of extreme weather can cause devastating damage, particularly in coastal areas where flooding is more likely to occur. The FEMA National Flood Insurance Program was created to help those affected by floods recover financially and provide them with much-needed protection against future events.
The recent Citizen newsletter states, "In 2022, approximately 18% of Florida homeowners carry flood coverage. Coastal residents are far more likely to carry it, with well more than 50% of policyholders carrying flood coverage in the hardest-hit coastal counties impacted by Hurricane Ian in September 2022. Participation in Central Florida counties is about 5-8%."
WHAT DOES THIS MEAN FOR POLICYHOLDERS?
The new flood coverage requirement from Senate Bill 2A means that policyholders are now required to purchase additional coverage if they live in a coastal county deemed high-risk by FEMA. This coverage can be purchased directly from an insurance agency.
HOW CAN I FIND OUT IF I AM AFFECTED?
If you’re unsure whether or not your property falls into one of these high-risk zones, you can visit the FEMA website to view their interactive map or contact your local insurance provider for more information.
It’s important that you understand the details of this new requirement and how it may affect your current policy so that you can make an informed decision about purchasing additional flood coverage if needed.
HOW TO GET AFFORDABLE FLOOD INSURANCE
Flooding is an unpredictable natural disaster that can cause massive damage and loss of property. If you live in a flood-prone area, it’s important to make sure your home is protected with the right type of insurance coverage.
- Shop Around for the Best Rates: The best way to find affordable flood insurance is to shop around for the best rates. Historically, flood insurance rates were determined by the Federal Government. Now, consumers may choose a policy from the NFIP or a private insurance company. Both the coverage and rates vary by company. Every company offers different policies and premiums, so take some time to compare prices and see what works best for your budget.
- Contact an Agent or Broker: Insurance agents and brokers can also be a great source of information when it comes to finding affordable flood insurance. These professionals have access to multiple companies and can help you find the best policy at the best price.
Plus, brokers have expertise in their field and can provide valuable advice on how much coverage you need and how much you should expect to pay for it.
Finding affordable flood insurance doesn’t have to be difficult — it just takes a bit of research and effort on your part! Shopping around for the best rates, consulting with agents or brokers, or looking into private insurers are all viable options for getting coverage on a budget without sacrificing quality flood protection for your home.
The new flood coverage requirement from 2A affects every Citizens policyholder who lives in a coastal county and has an increased risk for flooding due to hurricanes and other severe weather events.
It’s essential that all affected homeowners understand their options when it comes to purchasing additional coverage, as well as how their current policies may be impacted by this change.
And if you need help finding the best homeowners or flood insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get a homeowners insurance quote online now
