Flood insurance will be mandatory for most Citizens policyholders by 2027

JACKSONVILLE, Fla. – A major change is coming for more than half a million Florida homeowners insured through Citizens Property Insurance, and those who don’t comply risk losing their coverage.

Flood insurance will soon be mandatory for most Citizens policyholders, regardless of whether their property is in a flood zone. The requirement is being phased in over the next few years, with all policyholders expected to have flood coverage by 2027.

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If you currently have wind coverage through Citizens, you will soon be required to carry a separate flood insurance policy as well.

The phased rollout is based on the value of your home:

• Homes valued at $600,000 or more must have flood insurance by Jan. 1, 2024

• Homes valued at $500,000 or more by Jan. 1, 2025

• Homes valued at $400,000 or more by Jan. 1, 2026

• All remaining homes by Jan. 1, 2027

Even if you are not in a FEMA-designated flood zone, the rule still applies once your home falls within the value bracket.

According to Matt Carlucci Jr., an agent with Brightway Insurance, the mandate helps protect Citizens from legal exposure when policyholders suffer flood damage that isn’t covered under standard wind or homeowners’ insurance.

“It can be frustrating when an insurance company tells you that you have to have something,” Carlucci said. “But ask yourself, despite how I feel about it, could it still be a good idea?”

Carlucci believed this rule may also be part of a larger strategy by Citizens to reduce its customer base by encouraging some homeowners to switch to private insurers that don’t have the same requirements.

Still, he advised everyone to consider flood coverage, citing data that shows most recent flood claims in Florida occurred outside of traditional high-risk flood zones.

“We recommend everybody get it,” Carlucci said. “We’ve just seen too many claims here in Florida — and in other states — where flood losses were in non-flood zones.”

Mark Friedlander with the Insurance Information Institute warns that waiting until a hurricane is imminent may be too late.

“So don’t wait until you hear there’s a potential hurricane heading to Florida,” Friedlander said. “You need to get ahead of it. That’s why we always recommend: Prepare now.”

Here are the next steps:

• Review your Citizens policy

• Know your home’s value

• Mark your deadline

• Shop for a flood insurance policy if needed

Insurance experts emphasized that being proactive now can help prevent policy cancellation later and potentially save you thousands in the event of a flood.

For more information on coverage and deadlines, visit Citizens Property Insurance’s website