The Florida Private Flood Insurance Market
When you live in Florida, floods are a real concern. Anyone who has been through a hurricane has seen the major effects it can have, and Florida Gov. Rick Scott has signed a bill into law that would give Floridians more choices when it comes to flood insurance.
The legislation is designed to encourage private insurers to offer flood insurance, giving them four options from standard coverage (which is basically what Floridians currently have under the National Flood Insurance Program) to three other enhanced coverages. The bill was a reaction to the Biggert-Waters Insurance Reform Act of 2012 which expanded flood zone areas, forcing more people to buy coverage, and raised some flood premiums in order to address the major shortages in the National Flood Insurance Program because of hurricanes Katrina and Sandy.
Private insurers offering flood insurance are able to set their own rates until October 1, 2019, giving them time to better understand which properties are at the highest risk and develop rates, and now flood insurance coverage can be better tailored to the policyholder's needs. Reactions to the new law have been mixed, with some believing this is a great move forward for Florida and others who don't see the private market taking off anytime soon.
Remember, as a property manager or community association, you're responsible for the safety of your guests. Make sure you know the facts about flood insurance, especially during hurricane season, and let your community know what you've learned. An informed community is a happy community, and it's up to you to keep them informed. If you wait until it's too late, a flood can having a devastating effect on not only the residents of your community, but also in common areas and administrative offices. Protect yourself and your community by learning more about the Florida flood insurance market today.