Mortgage lenders require homeowners to carry homeowners’ insurance. There are a number of reasons for this, but the most important one is that your lender will want your home rebuilt or repaired in case of any loss.

Your home is the collateral for your mortgage and without the home, the mortgage has little value. By requiring homeowners to carry insurance for at least the cost of rebuilding the home, the lender and homeowner are both protected from disaster. Your mortgage may exceed the value of the home, since the lot that your home sits on has a value and is part of the mortgage as well.

In a special session in December 2022, the Florida Legislature implemented stricter flood insurance requirements than are required by the Federal Government. Applicants or insureds of Citizens Property Insurance Corp. for personal lines residential coverage are required to obtain flood insurance for new policies starting in March 2023.

The phased-in flood requirement establishes:

  • For risks located in areas designated by FEMA as special flood hazard areas, flood insurance must be secured for new Citizens policies with an effective date on or after April 1, 2023, and at renewal for Citizens policies that renew on or after July 1, 2023.
  • For all other risks, the requirement to obtain flood insurance at policy issuance or renewal is effective:
    • March 1, 2024, for policies insuring property to a limit of $600,000 or more.
    • March 1, 2025, for policies insuring property to a limit of $500,000 or more.
    • March 1, 2026, for policies insuring property to a limit of $400,000 or more.
    • March 1, 2027, for all other policies.

The requirement applies to all single-family residences regardless of the property’s elevation above base flood elevation and whether or not the property is mortgaged. The requirement does not apply to condominium policies.

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