A significant change is coming for thousands of policyholders insured by Citizens Property Insurance Corporation in Florida: starting on January 1, 2027, most homeowners' policies that include wind coverage will also require flood insurance, even when the home is located outside an area deemed high-risk by FEMA.
The measure represents the final phase of a requirement approved by the Florida Legislature and implemented progressively over the past few years.
Until now, outside the special flood risk zones, the obligation mainly depended on the insured value of the home. In 2027, that threshold will disappear.
The official information from Citizens about flood insurance states that for new or renewed policies with wind coverage, starting from January 1, 2027, affected homes regardless of their value must have flood coverage.
It doesn't matter if the house is outside a high-risk area
This is probably the change that could surprise the most homeowners.
A residence does not need to be located within a Special Flood Hazard Area (SFHA) designated by FEMA to be subject to the requirements of Citizens.
The homes located in those high-risk areas have already been required to have flood insurance since earlier phases of the program.
For properties located outside those areas, Citizens has implemented a progressive schedule:
2024: homes with Coverage A of $600,000 or more.
2025: homes with Coverage A of $500,000 or more.
2026: homes with Coverage A of $400,000 or more.
2027: all affected policies, regardless of value.
This means that a home insured for $250,000, $300,000, or any lower amount that has previously been exempt from the requirement due to being outside a high-risk FEMA zone may now require flood insurance when its policy takes effect or is renewed starting January 1, 2027.
It doesn't necessarily start on January 1st for everyone
The date of January 1, 2027, marks the beginning of the new phase, but that does not mean that all current Citizens policies will change exactly on that day.
The requirement applies to new policies and renewals with an effective date starting from January 1, 2027.
For example, a policyholder whose Citizens policy is set to renew in March 2027 must have the corresponding coverage for that renewal.
Therefore, customers should check the expiration date and renewal of their policy in advance.
Which policies are affected?
Citizens states that the requirement applies to most of its personal residential policies that include wind coverage.
Among the main affected cases are owners of single-family homes and other residential properties insured by Citizens that have wind or hurricane coverage.
Florida law allows Citizens to consider a homeowner or applicant ineligible for residential coverage if they refuse to obtain and maintain the required flood insurance.
There are significant exceptions
The obligation does not apply in exactly the same way to all Citizens policies.
The company currently identifies several exceptions:
Policies for condominium unit owners.
Content policies for tenants.
Policies that exclude coverage for wind or hail.
This is particularly relevant in Miami-Dade and other areas of South Florida, where there is a large number of apartment owners in condominiums.
A condominium unit owner should not assume they are affected by the general rule without first verifying the exact type of policy they have with Citizens.
Citizens do not sell flood insurance
Another fundamental point is that Citizens does not provide direct flood coverage.
Florida legislation explicitly states that Citizens Property Insurance Corporation cannot offer that coverage.
The owner must obtain a separate policy through the National Flood Insurance Program (NFIP) or through a private insurer that offers coverage that meets the requirements established by Florida and Citizens.
This means that a customer who keeps Citizens as their primary homeowners insurance may end up paying for two different coverages:
The residential policy of Citizens.
A separate flood insurance policy.
What amount of flood insurance does Citizens require?
For homeowners insurance policies subject to this requirement, Citizens establishes as a general rule that flood coverage on the structure must be equal to or greater than the value of the home insured under Coverage A of the Citizens policy.
But there is a significant limitation.
The NFIP sets a standard maximum of $250,000 coverage for the structure in residential properties.
When the level of coverage required by Citizens is not available through the NFIP, Citizens accepts the maximum coverage for which the property owner is eligible.
The company is currently publishing:
$250,000 as the maximum limit of Coverage A within the regular NFIP program.
$35,000 in certain communities within the NFIP emergency program.
Property owners can also explore private alternatives that meet the requirements set by Florida legislation.
Do not confuse market value with Coverage A
During the previous phases of the requirement, the thresholds of $600,000, $500,000, and $400,000 referred to the insured reconstruction value known as Coverage A.
It was not necessarily about the purchase price, the value of the land, or the price the property would fetch if sold on the market.
A home that is worth $700,000 on the market, for example, may have a different figure in Coverage A because the insurance fundamentally calculates the cost to rebuild the structure.
Starting in 2027, this difference will lose significance in determining whether it qualifies for the final phase, as the requirement will be extended to affected policies regardless of the value of Coverage A.
What documents will the owner need to present?
Citizens requires new clients and those renewing a policy affected to demonstrate that they have the appropriate flood insurance.
They also need to complete the form titled Policyholder Affirmation Regarding Flood Insurance (CIT FW01).
As proof of coverage, Citizens currently accepts documents such as:
The flood insurance policy declarations.
A flood insurance application accompanied by proof of payment while the policy is pending.
In certain cases, provide proof of flood endorsement that meets the relevant requirements.
The owner should coordinate the process with their agent before the renewal to avoid eligibility issues.
What happens if the required insurance is not presented?
The consequence can be significant.
Florida legislation allows Citizens to deny coverage or not maintain eligibility for a property when the insured refuses to obtain and maintain the mandatory flood insurance.
Citizens has also explained that affected policyholders may receive non-renewal notices related to the failure to meet the flood requirement.
This does not necessarily mean that such a notice is irreversible.
When the issue is solely the lack of required documentation or coverage, the owner must quickly contact their agent to find out what needs to be submitted before they definitively lose the opportunity to renew.
It is not an obligation for all private insurers in Florida
Another important detail is that this requirement is directly linked to eligibility for maintaining a Citizens policy.
It does not mean that starting in 2027, all property owners in Florida, regardless of their company, will be required by this rule to purchase flood insurance.
Private insurers may have their own requirements, and a mortgage entity may also require flood insurance under certain circumstances.
But the final phase of 2027 is specifically part of the rules set for Citizens.
A mortgage may also require flood insurance
There is another requirement independent of Citizens.
Properties located in certain designated high-risk areas that have a mortgage backed by the federal government are generally required to maintain flood insurance.
For this reason, some property owners were already required to have an NFIP policy or equivalent long before the changes made by Citizens.
The Citizens requirement extends the situation to many homes that may be outside those areas and that were not subject to the federal requirement due to their location.
The standard homeowners insurance policy typically does not cover flooding
One of the reasons these two coverages are handled separately is that a standard homeowners policy typically does not cover damages directly caused by a flood.
A hurricane, for example, can cause damage of various kinds.
Wind damage may be covered by the homeowners' policy, while flooding due to accumulation or water ingress may require a specific flood policy.
Therefore, having coverage against hurricanes or wind does not automatically mean that the home is insured against flooding.
In Miami-Dade, some homeowners can receive up to a 35% discount
For residents of Miami-Dade, there is an additional element that can help reduce the cost.
CiberCuba recently explained that certain NFIP policies in unincorporated areas of Miami-Dade can receive a discount of up to 35% thanks to the county's classification within FEMA's Community Rating System.
That discount does not mean that all county residents automatically pay 35% less.
It depends on the jurisdiction where the property is located, the policy, and the specific conditions of the NFIP.
But Citizens policyholders who need to purchase flood coverage should check if their address qualifies for discounts from the federal program.
It is not advisable to wait until the last days before the renewal
The new NFIP policies generally have a 30-day waiting period before coverage begins.
There are exceptions, including certain cases related to the contracting, extension, or renewal of a mortgage.
The official NFIP information advises against waiting until a storm arrives to obtain coverage.
Although the Citizens procedure allows for an initial insurance application to be submitted along with proof of payment while the flood policy is still pending, starting the process early reduces the risk of issues during renewal.
What should Citizens policyholders do now?
Check the renewal date of your Citizens policy.
Confirm whether the policy includes wind coverage.
Check the exact type of policy to see if it falls under the exceptions.
Request flood insurance quotes from the NFIP and the private market.
Consult with the Citizens agent what documentation you will need to present.
Review Coverage A and the necessary flood coverage level.
Check available discounts in your community.
Do not wait for the renewal date to start the process.
The change enters its final phase in 2027
The flood requirement began to be implemented gradually following the insurance market reforms approved by Florida in 2022.
The owners within special flood zones were the first affected, followed by homes outside those areas according to different levels of Coverage A.
The 1st of January 2027 marks the start of the final phase: for the new policies and renewals affected, it will no longer matter whether the home is worth less than $400,000 or if it is outside a FEMA high-risk area.
The key will be different: if Citizens' homeowners policy falls within the mandatory categories and offers wind coverage, the insured must obtain and separately maintain the required flood coverage to remain eligible.
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