Flood Insurance Is Still Changing: What Florida Residents Should Watch

Flooding is one of the most common and costly disasters in Florida. With hurricane season underway, many homeowners are taking a closer look at their flood coverage. Even if your policy hasn’t changed, your premium might increase because of FEMA’s Risk Rating 2.0.

Although Risk Rating 2.0 officially launched in 2023, many Florida residents are just now feeling the financial impact. Whether you're renewing your policy, shopping for better coverage, or buying a new home, it’s important to understand how the system works and what your options are in today’s market.

Risk Rating 2.0: What It Means for Your Premium in 2025

Risk Rating 2.0 changes how FEMA calculates flood insurance premiums under the National Flood Insurance Program (NFIP). Instead of using flood zones alone, the new model looks at details specific to your property, including:

• Distance to water
• First-floor elevation
• Flood frequency and severity
• Cost to rebuild your home

As a result, pricing now reflects individual property risk rather than just location. Some homeowners have seen their rates go down. Others, especially those in coastal or high-value areas, are facing premium increases year after year. These increases are typically capped at 18% annually, but that still adds up overtime.

If your premium didn’t jump in 2023, there’s a good chance you will start to feel the effects in 2025 and beyond.

NFIP vs. Private Flood Insurance: What You Should Know

The NFIP is federally backed and accepted by most lenders, but it comes with limitations:

• Coverage is limited to $250,000 for the structure and $100,000 for contents
• A 30-day waiting period usually applies
• There is no coverage for additional living expenses

Private flood insurance is a growing alternative in Florida. These policies often offer:

• Higher coverage limits
• Coverage for additional living expenses
• Competitive pricing, especially for homes with lower risk

With more private carriers available in Florida, comparing quotes is an important step in protecting your home.

What Florida Homeowners Should Do Now

1. Review your renewal notice carefully this year. Even a small increase can compound over time.
2. If you’re buying a new home, ask for flood insurance quotes early.
3. Keep in mind that 25% of flood claims come from homes in low to moderate risk zones.
4. Ask your agent to compare NFIP and private flood insurance options so you can make an informed choice.

Need help reviewing your flood coverage or getting a quote? Sterling Meadows Insurance Agency is here to help Florida homeowners stay protected, rain or shine.