The federal government requires flood insurance if a property is in a Special Flood Hazard Area (SFHA) and if you have a federally backed mortgage. Many private mortgage lenders also require a property-owner to carry flood insurance. “Although insurance regulation primarily occurs at the state level, with most of our Chamber's advocacy efforts focused accordingly, there are exceptions to this rule, notably in the realm of flood insurance, where we engage in advocacy activities at the national level in Washington D.C.,” said Jeff Chernoff of Insurance Advisor at IAT, Inc. and Chamber Board Member.
In Florida, the average cost of flood insurance is $716 per year, but is only held by approximately 25% of households. In accordance with Florida law, all homeowners who rely on Citizens Property Insurance Corp. will be required to purchase flood insurance if their property value is $400,000 or more. That requirement kicks in March 1, 2026. Citizens, the state-backed insurance company now holds 1.35 million policies.
During our meetings in Washington D.C., the Chamber specifically sought opportunities to meet with Federal Emergency Management Agency (FEMA), the overseeing body for the National Flood Insurance Program (NFIP). “We are keenly interested in the regulation of rates under the NFIP, particularly as it pertains to our region,” said Chernoff. “Our aim was to gain insight into the discounts and credits that the Tampa Bay area is currently eligible for.”
There are several cost reduction discounts and strategies offered by the federal government that individuals and communities can take advantage. One of these discounts can be received if a homeowner is living in a community that is participating in the Community Rating System (CRS) program, in which policyholders could receive up to a 45% discount on flood insurance. For example, The City of Tampa is currently participating in the CRS as a Class 5 community which receives a 25% discount. Policyholders can also take advantage of up to $30,000 of Increased Cost of Compliance coverage which can help pay for elevation, relocation, or demolition of a property.
The Tampa Bay Chamber takes the recent increases in insurance costs seriously, as it impacts our members across the region. If there are viable avenues to further reduce these costs, we are committed to advocating for such opportunities.
Sources: FEMA.gov, HillsboroughCounty.org, agents.floodsmart.gov