Citizens Insurance expands flood insurance requirement to those not in flood zones (2024)

ST. PETERSBURG, Fla. — Douglas Mason is now having to shop around for flood insurance, even though he doesn't live in a flood zone. He is now one of about 18,000 Citizens Insurance policyholders who will get a notice they are now required to get flood insurance this year.

"It's insulting," Mason said. "To try to get everybody for flood when you aren't in a flood zone and purposely never bought in a flood area. That's wrong."

CITIZENS INSURANCE PHASED APPROACH

It's a phased approach by Citizens Insurance, first requiring everyone in a flood zone to get insurance last year. Now in 2024, those new policyholders and those up for renewals will now be required to carry flood insurance. Citizens breaking down their phased approach as follows:

• January 1, 2024, for policies insuring property valued at $600,000 or more
• January 1, 2025, for policies insuring property valued at $500,000 or more
• January 1, 2026, for policies insuring property valued at $400,000 or more
• January 1, 2027, for all other policies

This means that by 2027, all citizen policyholders - flood zone or not - will have to have flood insurance.
"What is the state doing?" Mason asked. "People are not going to be able to afford it."

A MOVE MADE BY STATE LAWMAKERS

State lawmakers made the move in their December 2022 special session on property insurance following Hurricane Ian. A Citizens spokesperson told us many homes, particularly in Central Florida, flooded even though they weren't in flood zones.

"Our take is every Florida homeowner should consider flood insurance, not just in flood zones," said Mark Friedlander with the Insurance Information Institute. "It could flood anytime, anyplace in Florida. You are not financially protected without flood insurance. We can't say it stronger than that."

PRICED OUT OF PARADISE

Friedlander said big picture, those on Citizens are already paying 30-40% less than those who have policies with private insurers, saying even adding flood insurance could still be lower than going private.

"In most cases, the math for citizens customers is it's less expensive to keep by citizens coverage. Add on the new flood insurance mandate versus shopping by policy and going to the private market for home insurance," Friedlander said.

However, it comes at a time when people are being priced out of paradise, some foregoing home insurance property altogether, let alone getting flood insurance.

"We all understand that we know the crisis we've been facing with the cost and availability of insurance. That's all you need another bill," he said.

Friedlander said that Florida has more insurance companies writing flood insurance than anywhere else in the nation - offering consumers better options to shop around. This comes as Friedlander said FEMA is raising rates through the National Flood Insurance Program, capped at 18% each year.

"Here's the great thing: Florida is the most competitive flood insurance market in the country," he said. "Don't just get one quote from FEMA. Get a couple of private quotes as well and see if you can do better."

For Mason, he is leaning towards going with Neptune Insurance at a policy of just under $515 a year.

"It's more or less Tsunami insurance," he said. "It's free money. I'm too high up. It will never flood here."

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