Most Florida Flood Zone Properties Not Insured

by Isaac Benmergui, Esq on October 9, 2017

flood zoneAs the Federal flood insurance program is debated in Washington, an Associated Press analysis found that many of the homes directly in the path of Hurricane Irma lacked flood insurance.

Flood insurance is required by lenders when your home is known to be in a 500-year or 100-year flood plain. However, there are several reasons homes that should be required to carry flood insurance aren’t actually covered. If the mortgage changes hands, the new holder may not be aware of the flood plain status. Homes not mortgaged may have let coverage lapse. Some homeowners drop coverage and their lender is never notified. Finally, some flood maps are simply out of date, so potential homeowners—and their lenders—aren’t even are that the home is at risk.

In the past five years, Florida’s total number of flood insurance policies has dropped by 15 percent. Florida has 1,350 miles of coastline and around 2.5 million homes in flooding hazard zones. Yet just 42 percent of the homes in Florida’s 38 coastal counties are covered.

Annual flood premiums range from $4,200 to about $200 in some places. Declines in coverage began after Congress approved a flood insurance rate hike in 2012. At that time maps of high-risk areas were also redrawn, which removed the flood insurance requirement from some areas.

Total insured and uninsured losses from Irma are estimated to be between $42.5 and $65 billion. Total losses from Florida, Georgia, Alabama and the Carolinas is estimated at $25 to $38 billion. Insured residential flood loss covered by FEMAs national flood insurance program is estimated at just $5 to $8 billion.

Call Miami Real Estate Lawyer Isaac Benmergui at 305.397.8547 and set up a no charge, no obligation consultation to discuss your case. We have over a decade of experience handling Real Estate and Civil Litigation cases throughout Miami and South Florida, and will use our expertise to help your case to the best of our abilities.

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