In the aftermath of the financially devastating Hurricane Ian that hit Florida in 2022, the state legislature passed a new bill requiring citizens to purchase flood insurance. This requirement applies to all properties across the states, regardless of whether they reside in a high-risk flood zone. In this blog, we will discuss the specifications of this new bill so you are prepared to adequately protect your property.
What’s the Purpose of This New Bill?
While Florida is known for its sunny beaches and beautiful climate, it’s also one of the most flood-prone states in the country, with almost the entire state susceptible to flooding from hurricanes and heavy rainfalls. Therefore, the main purpose of this bill is to protect Florida residents from future catastrophic losses caused by flooding.
Important Details To Know
The new law requires homeowners to purchase flood insurance from a reputable insurer licensed to do business in the state of Florida. The insurance coverage must be purchased before a mortgage lender can issue a loan for the property, and it must be maintained throughout the life of the loan. This requirement is aimed at ensuring that all homeowners have protection in place, regardless of their financial status or their property’s location,
Cost of Flood Insurance
The cost of flood insurance varies depending on the level of risk for flooding in a particular area. In general, homeowners in high-risk flood zones will pay more for flood insurance than those in low-risk zones. However, the cost of flood insurance may also be affected by other factors such as the age and construction of your home, the size of the property, and the deductible chosen by the homeowner.
Florida citizens must purchase flood insurance that meets the minimum requirements set by the National Flood Insurance Program (NFIP). This includes coverage for both the building structure and personal property, with separate limits for each.
The minimum coverage for the building structure is set at $250,000, while the minimum coverage for personal property is set at $100,000. However, homeowners can choose to purchase additional coverage if needed.
It’s important to note that the NFIP’s flood insurance policies have certain limitations and exclusions, such as not covering damage caused by mold or mildew, loss of income due to business interruption, or additional living expenses. It’s of the utmost importance for homeowners to carefully review their policies and consider their specific needs to ensure they get adequate coverage.
Choosing the Right Insurance Partner
It’s essential for homeowners to choose the right insurance partner when purchasing flood insurance. A reputable insurer with a proven track record of handling flood claims can provide you with peace of mind and confidence knowing your property is in good hands.
At COBIA Insurance, our team of insurance experts have vast experience handling both flood and homeowners insurance. We can help you explore your coverage options and provide your property with the highest level of protection for the best price. For more information on our services, please contact us today to set up an appointment.