What's Up With Flood Insurance?

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Real Estate

Get ready, South Florida, because there are some changes coming to flood insurance rates in the next few years. While it may sound daunting, the changes are being made to better reflect the actual risks involved.

Instead of relying on outdated flood zone maps, FEMA is now taking into account a variety of factors when determining premiums. They are considering things like how far your property is from the ocean, the amount of rainfall in your area, and the cost of rebuilding your home. This means that the prices will be more tailored to your specific situation.

FEMA recently shared estimates for the average flood insurance premium by ZIP code, and it looks like some areas will be more affected than others. For example, the ZIP code 33469, which covers parts of Jupiter and Tequesta in coastal Palm Beach County, is expected to see a 342% increase in premiums on average. In the most expensive ZIP code, 33149, which includes Key Biscayne, the average premiums will be over $7,000 per year.

These changes will impact several ZIP codes along the coastline, from Summerland Key to Jupiter, as well as three ZIP codes in inland Miami-Dade County. While the increases will eventually lead to higher annual insurance bills, it's important to note that they will be phased in gradually.

Let's take ZIP code 33036, covering Islamorada, as an example. Over time, policyholders in that area can expect average annual increases as high as $4,056. However, these increases will happen gradually. In ZIP code 33469, which includes parts of Jupiter and Tequesta, policyholders will experience 18% insurance hikes for eight consecutive years before their premiums stabilize at the new Risk Rating 2.0 level.

Hopefully this explanation helps you better understand the upcoming changes in flood insurance rates. While it may be an adjustment, remember that these changes are being made to ensure that your premiums align more closely with your specific risks.

It turns out that the highest average premiums will be in ZIP codes located in Miami-Dade and Monroe counties. However, that doesn't mean that other areas won't be affected.  Keep in mind your insurance premium is directly related to what the insurance company will need to pay out in the case of a claim.  As home values sky rocket, the pay outs and premiums are sure to follow close behind.

In Miami-Dade and Monroe counties, areas such as Key Biscayne, Islamorada, Marathon, Miami Beach, North Bay Village, Bal Harbor, Surfside, and Sunny Isles will have higher insurance costs when it comes to protecting against flooding. It's important to note that Key Biscayne will rank as the sixth highest ZIP code for insurance premiums in the entire state.

In Miami-Dade County, the biggest premium increases will be seen in the southern part, particularly in ZIP codes where home prices are higher than average (like 33146, which includes Coral Gables) or where premiums have been historically low (such as 33033, covering Leisure City, and 33170, running west from Goulds to the Everglades).

Moving to Broward County, the major premium increases will be concentrated on the coast, especially in ZIP codes surrounding Fort Lauderdale. Let's take a closer look: ZIP code 33315, which includes Edgewood, one of the neighborhoods heavily affected by the Fort Lauderdale floods, will see a relatively modest 64% increase in premiums. However, just a few miles north in ZIP code 33305, premiums are expected to double on average.

We hope this explanation helps you understand the upcoming changes in flood insurance premiums in South Florida. Remember, it's always important to stay informed about these updates and make sure you have the necessary coverage for your specific area.

If you even have any questions your can reach out to your Seasons Group team member at your convenience!


The Seasons Group at Keller Williams

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Fort Lauderdale, FL 33308



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