![]() ![]() On some flood maps, there may also be a zone labeled with the letter D. Flood zones identified by the letters A or V repre- sent high-risk areas, known as Special Flood Hazard Areas (SFHAs). Rates will remain relatively stable in North Dade and inland Broward and Palm Beach. letters B, C or X represent moderate- and low-risk areas. That affects 1.2 million Citizens policyholders in the state.Īcross South Florida, the biggest premium hikes will go to policyholders in the Keys, South Miami-Dade and coastal Broward and Palm Beach counties. What is Zone D FEMA’s flood maps, known as Flood Insurance Rate Maps (FIRMs), identify areas of flood hazard, which are labeled on the flood map as zones starting with the letters A and V for high-hazard areas, known as Special Flood Hazard Areas or SFHAs, and Zone X for moderate- or low-hazard flood-risk areas. This year, Florida lawmakers passed a bill requiring anyone with hurricane and wind policies from Citizens Insurance to also get flood insurance. The number of Florida flood insurance policies is likely to rise. Emergency management experts warn that just about anyone in a state vulnerable to hurricanes and heavy rains should get it. Although Florida has the highest number of policies in the country, roughly 4 out of 5 Florida homes aren’t covered. Mortgage lenders and banks often require that home and property owners get federal flood insurance. Currently, many policyholders with lower-value homes are paying more than they should and policyholders with higher-value homes are paying less than they should,” FEMA wrote in an April 2021 press release announcing the change. “The new methodology allows FEMA to equitably distribute premiums across all policyholders based on the value of their home and the unique flood risk of their property. The agency also argues that the new premium regime is more fair. Since April 2022, new policyholders have had to enroll at the full Risk Rating 2.0 price.įEMA says the new premiums reflect the reality of Florida’s increasing flood risk, as people continue to build homes in flood-prone areas and climate change raises sea levels and makes “rain bomb” events, like the 1,000-year floods that recently inundated Fort Lauderdale, more common. If you’re buying a new flood insurance policy, however, you’ll get hit with the new premium all at once. The bad news is, you might see that flood insurance premium go up 18% every year for several years until it reaches the new Risk Rating 2.0 calculation for your home. Congress has capped price hikes at 18% per year. FEMA estimates that about 20% of Florida policyholders will actually see their premiums drop under the new pricing regime, known as Risk Rating 2.0.įor those with current federal flood policies, the good news is that the rate won’t immediately skyrocket. Some important qualifiers: The premium hikes won’t hit all at once for existing policyholders, and not everyone will see an increase. ![]()
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