Sunday, September 24, 2023

The Florida Flood Insurance Market: A Comprehensive Overview of Recent Changes

Florida’s flood insurance market has been a topic of intense discussion and scrutiny in recent times. With the state’s unique geographical location and susceptibility to hurricanes and flooding, the importance of flood insurance cannot be understated.

This article delves into the recent developments in the Florida flood insurance market, drawing from multiple sources to provide a comprehensive overview.

1. The Rising Costs and New Mandates

Florida property owners are grappling with higher premiums and new flood insurance mandates. Local governments are being urged to emulate the practices of areas like Cutler Bay and counties like Monroe, Pinellas, and Ocala.

These jurisdictions have achieved a Class 3 rating from the Federal Emergency Management Agency (FEMA), resulting in a 35% discount on flood insurance premiums for homeowners1. Such savings are significant, especially in a time of escalating insurance costs.

However, achieving such ratings requires significant effort and investment.

For instance, Cutler Bay, which was severely affected by Hurricane Andrew in 1992, had to make substantial improvements to its infrastructure and flood mitigation strategies to move from a Class 6 to a Class 3 rating1.

2. FEMA’s New Risk Rating 2.0

FEMA’s introduction of the Risk Rating 2.0 methodology for calculating flood insurance has been met with mixed reactions.

While it promises a more accurate reflection of flood risks, it also means higher premiums for many, especially in low-elevation coastal areas2. Areas like Hell Gate on Florida’s East Coast might see flood insurance rates surge by an average of 342%2.

The new rating system is based on multiple factors, including rainfall levels, elevation, proximity to water bodies, and rebuilding costs.

While some areas will experience a hike in premiums, others might see a decrease2. However, the full impact of these changes will be felt gradually, as federal law caps rate increases to 18% annually on renewals2.

3. Citizens’ New Eligibility Rules

Citizens, a significant player in Florida’s insurance market, is updating its eligibility rules to align with flood coverage law requirements. From January 1, 2024, flood coverage will be mandatory for new and renewal policies with wind coverage that insure dwellings with a replacement cost of $600,000 or more3.

This threshold will be progressively lowered in the subsequent years, making flood insurance a requirement for an increasing number of properties3.

4. Navigating the Crisis with GreatFlorida Insurance

In these challenging times, having a trusted partner can make all the difference. GreatFlorida Insurance, with its 130 locations across Florida, stands ready to guide Floridians through this crisis.

“The complexities of the flood insurance market can be daunting. Our agents are equipped with the knowledge and resources to help Floridians find the best rates and options for Flood Insurance,” says Dustyn Shroff, VP of GreatFlorida Insurance.

For those seeking guidance, more information is available at

The changes in the flood insurance market are a reflection of the evolving challenges posed by climate change and the need for more accurate risk assessment. While the increased costs can be burdensome for many, they underscore the importance of adequate flood coverage in a state like Florida.

With trusted partners like GreatFlorida Insurance, residents can navigate these changes more confidently, ensuring that they are adequately protected against the unpredictable forces of nature.


  1. Insurance Journal – Insureds Hot About Flood Insurance Costs? Some Areas Are Seeing 35% Discounts 2
  2. Insurance Journal – FEMA Releases New Flood Insurance Rates by ZIP Code. Brace for Impact. 2 3 4
  3. Citizens – Flood Insurance Requirements for Coverage Limit 2
Dustyn Shroff
Dustyn Shroff
Vice President at GreatFlorida Insurance

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