Florida Mandates Flood Insurance for Citizens Property Policyholders by 2027

Florida's Citizens Property Insurance is implementing a new mandate requiring flood insurance for most policyholders, impacting over half a million homeowners. This requirement will be phased in through 2027 and applies even to properties outside FEMA-designated flood zones, based on the home's value.

Policyholders with existing wind coverage must also obtain separate flood insurance, highlighting a significant regulatory shift in homeowner coverage policies. The change aims to mitigate Citizens' legal exposure related to flood damage claims that current wind or homeowners' policies do not cover. It represents a strategic movement within Florida's insurance market, potentially encouraging policyholders towards private insurers with different coverage requirements.

Insurance agents and information institutes emphasize the importance of early adoption and preparedness, noting the high incidence of flood claims outside traditional high-risk areas. Proactive measures in obtaining flood insurance are advised to avoid policy cancellations and substantial financial loss.

This phased rollout reflects broader industry trends toward comprehensive risk management and regulatory compliance in property insurance.