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SW Florida Stripped of Flood Insurance coverage Reductions After ‘Improper Rebuilds’



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After spiking premiums, nonrenewals and complaints about unpaid claims, greater than 115,000 property homeowners in southwest Florida are actually dealing with a brand new slap within the face after 2022’s Hurricane Ian: 25% greater flood insurance coverage charges as a result of native officers reportedly allowed subpar rebuilding for flood-damaged houses.


Governments in Lee County, Florida, which took the brunt of Ian’s storm surge in September 2022, mentioned in a information launch final week that the motion from the Federal Emergency Administration Company is a “devastating blow” that got here with no warning.

“With none prior discover, FEMA verbally knowledgeable Lee County and a few of its municipalities late Thursday that it was altering reductions on Nationwide Flood Insurance coverage Program (NFIP) premiums that permit residents to avoid wasting as much as 25%, delivering a blow to the neighborhood because it continues to get well from the devastation of Hurricane Ian,” reads the assertion from Lee County officers.


FEMA has lengthy allowed the flood insurance coverage premium reductions for communities that implement the company’s rebuilding necessities and take different measures to cut back flood losses. These embody requiring rebuilding – and in lots of instances elevating – houses that had been greater than 50% broken in a flood occasion.

However the federal company mentioned final week that the county and several other municipalities had loosened the foundations after the storm, permitting many policyholders to remain under the 50% mark and keep away from a complete rebuild and elevation, The Miami Herald, the Fort Myers Information-Press and different Florida information retailers reported.


The transfer implies that the cities and the county will lose the NFIP’s community-wide reductions on flood insurance coverage. Some communities could possibly be booted out of the NFIP altogether, a FEMA official mentioned in a letter, the Herald reported.

No one needed to achieve this level, however the federal company had little selection, and had despatched native officers a number of letters requesting appropriate data on rebuilt properties, Robert Samaan, a regional administrator for FEMA, advised the Herald.


FEMA inspectors mentioned they discovered issues quickly after Hurricane Ian slammed by way of the world in 2022, together with a lot unpermitted rebuilds and an absence of documentation.

Native officers referred to as the transfer “punitive.”


“Ian was the third costliest hurricane to hit the USA, and plenty of of our residents are nonetheless reeling financially from its impacts,” Lee County Fee Chairman Mike Greenwell mentioned within the press release.

“Make no mistake – FEMA is the villain on this nightmare,” Cape Coral Mayor John Gunter mentioned within the assertion.

The native leaders mentioned that they had undertaken many efforts in recent times to adjust to the low cost system. However FEMA contends crucial measures weren’t adopted.


The typical flood premium will rise by about $300 a 12 months, beginning Oct. 1.

Paradoxically, some critics of the NFIP have warned for years that this system had carried out little to implement its Group Ranking System parameters, permitting communities nationwide to assert reductions even when houses weren’t rebuilt to newer code necessities. It’s unclear if the Lee County motion marks a brand new method by FEMA management.


The thought behind the CRS was to encourage communities to maintain extra buildings out of flood zones and take different steps to forestall flood harm, thus lowering losses to NFIP. Some jurisdictions that gain the highest rating can see discounts as much as 40%.

The CRS is flawed, although, as a result of it undercuts FEMA’s newly established Threat Ranking 2.0, which goals to base flood insurance coverage charges extra on the danger of particular person properties, not area-wide and outdated flood maps, Craig Poulton, head of Poulton Associates, a personal firm that writes flood and disaster insurance coverage, mentioned final 12 months.


Southwest Florida communities might have an opportunity to rejoin the CRS low cost program – however not till 2026.

Prime picture: Holly Nugyn walks out of her flooded neighborhood after Hurricane Ian handed by the world Thursday, Sept. 29, 2022, in Fort Myers, Fla. (AP Picture/Steve Helber)




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