Florida hurricanes underscore flood insurance importance amid rising risks

MIAMI – The recent hurricanes making landfall in Florida have raised a critical question for homeowners across the state: Do you have flood insurance?
Both Hurricane Helene and Hurricane Milton were declared mostly flood events by the insurance industry, meaning that homeowners without flood insurance may find themselves in a difficult position when filing claims.
Flooding is a common issue in South Florida, even without named storms.
Edgewood resident Claudia vividly remembers the damage from last year’s historic flooding, pointing out where the water levels rose all the way to the top.
CBS News Miami’s cameras were there as she scrolled through photos of her home’s damage during the floods of April 2023. The flooding left her trapped, unable to enter her home for days.
“It took six days before the water went down,” Claudia recalled. “I couldn’t get into my house. I had to climb through the window.”
In June, another rain event brought two feet of standing water into her home, destroying floors, belongings, and appliances. She is still fighting to get her insurance claim approved for that incident.
“Everybody looks at me and says, ‘Not again, Claudia, you’re going through this again. Why don’t you get out of there?'” she said.
Despite the repeated damage, Claudia plans to stay in her home. While her home is paid off, and she chooses not to carry property insurance because it’s too expensive, she is thankful she kept her flood insurance.
“The only thing that saved this house is flood insurance,” she said.
Jose Mata, who works for Sebanda Insurance, emphasized the importance of flood insurance in Florida.
“If you don’t have flood insurance, that could be a pretty penny,” he said, noting that flood insurance is a separate policy provided either through private insurers or the National Flood Insurance Program (NFIP).
Mata has seen an increase in South Florida homeowners opting for flood insurance alongside their regular coverage.
“People are realizing it’s better to have flood insurance to protect against floods during hurricane season and from heavy rains,” Mata added.
Despite the risk, the Insurance Information Institute estimates that only 20% of Floridians have flood insurance. Most policies are written through FEMA’s National Flood Insurance Program, which has coverage limits of $250,000 for buildings and $100,000 for contents.
Mark Friedlander, Director of Corporate Communications at the Insurance Information Institute, explained that a growing number of homeowners are at risk due to Florida’s increasing flood events.
“There are more people living in harm’s way than ever before, especially in South Florida,” Friedlander said, calling flooding a 365-day-a-year concern due to both heavy rains and hurricanes.
However, Friedlander noted that this year’s hurricanes – Helene and Milton – are not expected to have a significant impact on South Florida’s insurance premiums. “The overall capital position of the industry is strong. They have adequate levels of reinsurance.”
While the outlook appears stable for now, many homeowners are still grappling with high insurance costs.
“How am I going to afford all this and keep the house going?” asked Claudia, echoing the concerns of many South Floridians paying high premiums for coverage.
Friedlander acknowledged that while rates may stabilize, South Florida homeowners still face five-figure annual insurance costs on average.
Still, he expressed optimism, noting that Helene and Milton were moderate loss events for property insurers and are unlikely to drive rates dramatically higher.