What No One Tells You About Flood Insurance in Florida
Florida’s recent storms – THREE to be exact – and evolving insurance regulations have left many homeowners feeling uncertain about their insurance coverage. Understanding how to protect your property can seem overwhelming between flood zones, rising premiums, and new laws. After a recent conversation with Ryan Flagler of Brightway Insurance, I’m here to share crucial insights to help you navigate the Sunshine State’s insurance landscape with confidence.
Whether you’re a current homeowner or planning to buy in Florida, this guide will break down everything you need to know about flood insurance, homeowners’ policies, and recent changes in the market.
Flood Insurance: Myths and Realities
A common misconception is that only homes in flood zones need flood insurance. In reality, most areas in Florida face some level of flood risk—even if your lender doesn’t require it. Flooding can happen anywhere, as demonstrated by past storms like Hurricane Helene in North Carolina.
Even if you’re in a low-risk flood zone, such as Zone X, investing in a basic flood policy could save you from costly damage caused by:
- Rising water from heavy rains,
- Tidal surges, and
- Erosion during storms.
Remember, homeowners’ insurance does not cover these types of damages. If water enters your home from outside, only flood insurance will protect you.
Homeowners Insurance vs. Flood Insurance: What’s Covered?
Homeowners’ insurance typically covers internal water damage, such as burst pipes or leaking appliances. However, older homes in Florida (30+ years) may face restrictions on water damage coverage due to outdated plumbing, requiring homeowners to purchase additional coverage.
Understanding these distinctions is essential for choosing the right insurance policies to protect your property fully.
Florida’s New Flood Disclosure Laws
If you’re buying or selling property in Florida, it’s important to understand the new flood disclosure law. Sellers must now disclose any known flooding history. However, if the previous owner purchased the home with cash and didn’t carry insurance, that history may not appear in claims records.
As a buyer, always request a five-year claims history and do your due diligence to uncover the property’s flood background.
Recent Insurance Reforms in Florida
Florida’s insurance market has faced significant challenges, including rising premiums and companies exiting the state. Fortunately, reforms initiated by Governor DeSantis are starting to stabilize the market. Key changes include:
- Tort Reform: Limiting attorney fees that previously inflated insurance costs.
- Roofing Fraud Prevention: Reducing false claims from door-to-door roofers offering “free roofs.”
These changes are encouraging more insurance carriers to re-enter the Florida market, providing homeowners with more options and competitive rates.
Tips for Lowering Your Insurance Premiums
Ryan Flagler shared some tips for finding the best insurance rates in Florida:
- Opt for Newer Homes: Properties built to the latest hurricane codes with concrete block construction and metal roofs tend to have the lowest premiums.
- Update Your Roof: Metal roofs are durable and storm-resistant, making them a smart long-term investment for Florida homeowners.
- Wind Coverage: Ensure your homeowners’ policy includes wind protection, which covers damage from hurricanes and storms.
Understanding Citizens Insurance
Citizens Insurance serves as Florida’s last resort insurer, stepping in when no private options are available. Currently, Citizens is undergoing a depopulation effort, encouraging policyholders to seek private insurance if the cost difference is within 20%.
While Citizens may offer lower premiums, private insurers often provide more comprehensive coverage. Work with an insurance broker to evaluate your options.
Flood-Prone Homes: How to Protect and Save
If you’re considering buying in flood-prone areas like Davis Shores, you’ve likely seen creative solutions like barriers or elevated landscaping. While these measures protect your home, they won’t lower your flood insurance premiums. Elevation remains the primary factor for determining flood insurance costs, and raising your home’s base level is the most effective—but costly—way to reduce premiums.
Conclusion
Florida’s insurance landscape may feel complex, but recent reforms and smart decisions can help homeowners protect their investments. If you’re buying a home, consider flood insurance—even if it’s not required. Ensure your homeowners’ policy includes water damage and wind protection.
For more insights, watch my other insurance videos on my YouTube Channel or download my free relocation guide for tips on navigating Northeast Florida’s real estate market.
If you have questions or need help with flood zones, insurance, or buying a home in Florida, feel free to contact me directly at (904) 747-0183.