Does Citizens Require Flood Insurance?

Citizens Property Insurance Corporation serves as Florida’s state-backed insurer, established to provide property insurance to owners who may struggle to find coverage in the private market. Many policyholders wonder if flood insurance is a mandatory part of their coverage with Citizens.

When Flood Insurance is Required by Citizens

Citizens Property Insurance Corporation has specific conditions under which flood insurance becomes a requirement for its policyholders. For properties located within a Special Flood Hazard Area (SFHA), as defined by the National Flood Insurance Program (NFIP), flood insurance is generally mandated. This requirement applies to new personal residential policies with wind coverage effective April 1, 2023, and to renewals beginning July 1, 2023.

Beyond SFHAs, Citizens is implementing a phased approach to expand flood insurance requirements to a broader range of properties. This initiative, stemming from December 2022 legislation. Policies with a dwelling value of $600,000 or more were required to have flood insurance starting January 1, 2024. The requirement extends to properties valued at $500,000 or more by January 1, 2025, and those at $400,000 or more by January 1, 2026. By January 1, 2027, all personal residential policies with wind coverage will be subject to this flood insurance mandate, regardless of property value or flood zone.

Properties with a federally backed mortgage often have a separate requirement for flood insurance if located in an SFHA. This is due to federal laws which mandate coverage as a condition of federal financial assistance for buildings in high-risk flood areas. Policyholders whose Citizens policies exclude windstorm or hail coverage are generally not required to purchase flood insurance.

Understanding the Flood Insurance Requirement

The flood insurance required by Citizens aims to provide coverage for direct physical losses caused by flooding. Standard homeowner’s insurance policies do not usually cover flood damage. Citizens itself does not offer flood insurance policies; policyholders must obtain this coverage from either the National Flood Insurance Program (NFIP) or a private flood insurance carrier.

NFIP policies offer two main types of coverage: building coverage for the structure and contents coverage for personal belongings. For residential properties, NFIP coverage limits are generally capped at $250,000 for building property and $100,000 for personal contents. Citizens requires flood insurance coverage to be equal to or greater than the dwelling value (Coverage A) of their policy. If the full dwelling value cannot be obtained through NFIP, Citizens will accept the maximum available NFIP limits.

These requirements protect policyholders and the broader insurance market. By mandating flood insurance, Citizens reduces its financial exposure to flood-related claims and ensures policyholders are better protected from substantial out-of-pocket expenses following a flood event.

Obtaining Flood Insurance

The most common way to purchase an NFIP policy is through an insurance agent who participates in the program. Many agents who sell homeowner’s or auto insurance can also assist with obtaining flood insurance.

Private flood insurance options are also available and may offer higher coverage limits or more flexible terms than NFIP policies. When considering private options, it is advisable to obtain quotes from multiple providers to compare coverage and premiums. Regardless of the chosen provider, the policy must meet Citizens’ specific requirements for coverage limits.

A typical NFIP policy has a 30-day waiting period before coverage becomes effective, though exceptions exist for new home purchases or changes to flood maps. Private policies may have different waiting periods, sometimes shorter. Upon obtaining coverage, policyholders must provide proof to Citizens, such as policy declarations or proof of payment. A completed Policyholder Affirmation Regarding Flood Insurance (CIT FW01) form is also required.