Pinellas, Estero, Cape Coral, Fort Myers Beach, and unincorporated Lee County are holding onto their National Flood Insurance Program (NFIP) discounts for now.
Floridians pay some of the highest rates for flood insurance, at $958 annually.
FEMA’s Community Rating System (CRS) program offers conditional discounts for NFIP policyholders in communities that meet certain standards for flood-mitigation efforts. Earlier this year, some communities were at risk of losing their discounts due to unpermitted work, lack of documentation, and poor monitoring of work in special flood hazard areas, WGCU reported.
“FEMA is trying to create a situation where after every hurricane, they don’t have to pay for rebuilding all the same structures,” David Silverberg, a retired editor at Homeland Security Today, told WINK News. “They want communities to harden. They want them to become more resilient. And the way they do this is by imposing these codes, or standards.”
Florida claimed two-thirds of all NFIP payouts in 2023. Payouts directly translate into higher rates for policyholders.
Homeowners could see continued savings if communities stay diligent in flood-mitigation efforts.
Community Rating System helping homeowners save
The FEMA-run CRS uses a points-based class system to categorize the number of discounts a community is eligible for — up to a 45% discount. Communities can opt into 19 scaled incentives, ranging from flood information at local libraries to relocating flood-prone buildings.
Pinellas County has a Class 2 CRS rating, which grants homeowners in the area a 40% discount on NFIP policies. Estero County has a 20% discount, and Cape Coral, Bonita Springs, Fort Myers Beach, and unincorporated Lee County have a 25% discount.
These discounts are conditional on the community’s effort to help mitigate flooding disasters. More resilient communities also result in fewer payouts from FEMA and lower flood insurance rates overall.
What’s next: Protecting Florida homeowners
Floridians pay high rates for homeowners insurance — $10,966 per year, according to Insurify data. Standard homeowners policies don’t include flood insurance, and homeowners in high-risk flood zones may be required to purchase coverage.
The state is bracing for a hurricane season that could result in high FEMA payouts.
Community resilience is key to earning, maintaining, and increasing discounts from FEMA.
“How do you keep this discount? You meet the standards, you exceed them, you build resiliently, you harden your community for the next storm,” Silverberg said. “You create a situation where you’re resilient against climate change, its effects, the storms, the weather, and every other hazard that threatens your community.”
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