Coverage Needed: Hundreds of Thousands in SE Now in Flood Zones With New Maps

The recent revisions to federal flood maps will add new requirements for new construction in the newly defined flood zones, while also providing coverage options that were previously unavailable to many homeowners and commercial property owners. Effective after July 31, these changes will require many more properties, including hundreds of thousands of homes in Florida and the Southeast, to purchase flood insurance. This includes an additional 138,800 properties in Miami-Dade, Palm Beach, and Broward counties. These areas are now considered high-risk flood zones due to updated data reflecting higher water levels, population growth, and changes in the landscape. As a result, homeowners with mortgages in these areas will need to buy flood coverage, creating opportunities for insurance agents but increasing costs for property owners.

The flood map changes also affect a variety of regions across Florida, including increases in flood zones in Miami-Dade (45,420 more structures), Palm Beach (5,800 more properties), and Broward County (almost 89,000 parcels). The revisions come as parts of Florida face significant rain and flooding, causing potential insurance claims in the hundreds of millions of dollars.

The changes also coincide with a decline in flood insurance coverage in some Southeastern states, with policies dropping 6% in Texas and Louisiana. Despite FEMA's revisions, local governments are responsible for enforcing building regulations in flood-prone areas, though many have not been effective, as seen in Lee County, Florida, where FEMA revoked flood insurance discounts after Hurricane Ian due to rebuilding violations.

Read the full article here: https://www.insurancejournal.com/news/southeast/2024/06/24/780732.htm