Navigating Flood Insurance in 2025: What You Need to Know
The intense 2024 hurricane season and historic flooding in Southwest Florida have raised important questions about flood insurance moving into 2025. At HH Insurance, we’ve been hearing from clients who are concerned about rising rates, coverage specifics, and the possibility of obtaining more than $250,000 in flood protection. In this blog, we’ll break down these key topics to help you better understand your options.
What’s Happening to Flood Insurance Rates?
Flood insurance in Florida primarily falls under two categories: the National Flood Insurance Program (NFIP) and private flood insurers. The NFIP, which accounts for about 90% of flood policies in the state, has undergone significant changes in how it determines rates.
- Risk Rating 1.0 (Pre-2021): Rates were based mainly on flood zones and elevation. Two homes in different locations but in the same zone often had similar rates, despite varying risks.
- Risk Rating 2.0 (Introduced in 2021): This new system considers a property’s location, structure value, and elevation to more accurately price flood risk.
Due to these changes, coastal homeowners are experiencing annual increases of 18%, a trend that could take 10-20 years to reach full NFIP pricing levels. However, properties built after 2021 or those maintaining continuous flood coverage may see more stable rates.
Private flood insurers are also adjusting pricing, with significant rate hikes expected for low-elevation, slab-on-grade homes. At HH Insurance, we proactively review renewals 90 days in advance to explore the best options for our clients. If you’re considering switching from private flood insurance to the NFIP, be aware of the 30-day waiting period for coverage to take effect.
For elevated homes with private flood policies and properties in Coastal Barrier Resources Act (COBRA) zones without flood claims in 2024, rates should remain relatively stable, with potential increases around 10%.
What’s Covered Under a Flood Policy?
Understanding what is and isn’t covered under flood insurance is crucial. Both NFIP and private flood policies have standard exclusions, including:
- Pools and Pool Equipment – Not covered under standard flood policies.
- Docks and Seawalls – These structures are also excluded.
- Enclosure Spaces – Homes built between 1975-1983 (or later, depending on the county) have limited coverage for finished areas below elevation. Even legally built below-elevation elevator shafts are excluded.
- Garages & Storage Spaces – Contents inside garages of homes built after 1975-1983 (or later) are typically not covered.
- Condo Owners – If your condo association carries an RCBAP policy, it covers the interior rebuild of your unit, but your personal belongings—like furniture—are not covered. You’ll need a separate contents policy.
- Actual Cash Value Coverage – Most flood policies pay out on an actual cash value (ACV) basis rather than replacement cost, meaning you’ll receive the depreciated value of items rather than the cost to replace them.
Can You Get More Than $250,000 in Flood Coverage?
Many homeowners ask whether they can secure more than $250,000 in flood insurance coverage. The answer is yes—through excess flood insurance. This type of policy works as an additional layer of coverage above the standard NFIP limit, effectively covering damages beyond $250,000.
However, excess flood insurance is not always available. Some key restrictions include:
- Prior Flood Claims – Homes that have previously experienced flood damage are often ineligible.
- High-Risk Areas – Homes located in high-risk zones, such as slab-on-grade homes on barrier islands, may not qualify.
- Non-Compliant Construction – Homes that have been modified without permits (e.g., removing flood vents or finishing enclosures improperly) typically cannot obtain excess flood coverage.
If you’re interested in excess flood coverage, our team at HH Insurance can assess your property and provide a quote if it’s available.
Final Thoughts
Flood insurance can be complex, and every situation is unique. The information provided in this blog reflects HH Insurance’s insights but does not replace specific policy language or professional advice.
For personalized assistance and to explore your flood insurance options, visit our website or give us a call. Our team is here to help you navigate these changes and ensure you have the coverage you need.
Thank you for trusting HH Insurance. Stay safe, and we’ll see you next month with more insights!
**This blog provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverage. These definitions do not alter or modify the terms of any insurance contract.