TAMPA, Fla. (WFLA) — A law passed by the Florida Legislature in December to address the state’s property insurance crisis included a provision that would require customers of Citizens Insurance, the insurer of last resort, to have flood insurance.
The deadline to add that coverage is coming soon, the company said in an announcement.
In order to be eligible for a Citizens policy, new customers who are located in areas designated by the Federal Emergency Management Agency as special flood hazard areas, will need flood insurance by April 1.
Existing policyholders in those areas must obtain flood insurance at renewal for policies renewing on or after July 1.
The new policy requirements will be phased in for new and existing customers over the next five years, split up by coverage amounts:
- January 1, 2024, for policies insuring property to a limit of $600,000 or more.
- January 1, 2025, for policies insuring property to a limit of $500,000 or more.
- January 1, 2026, for policies insuring property to a limit of $400,000 or more.
- January 1, 2027, for all other policies.
The legislation, Senate Bill 2A, was signed into law by Gov. Ron DeSantis and supported largely on partisan lines during the special legislative session.
Proponents of the new statute said it was a big step toward reforming the state’s insurance market, while opponents pushed back on it, saying it would not provide relief to consumers facing rapidly rising premiums.
By way of explanation, Citizens said flood damage is not typically covered under the usual “multiperil” policies, and that requiring flood coverage would be better for customers when it comes to out-of-pocket repair costs. As of 2022, only 18% of Florida homeowners had flood coverage, according to Citizens.
