Flood Insurance

Major Changes to Flood Policy Rates

A major overall of how FEMA rates building for flood insurance policies began October 1, 2021.

Between October 1st and April 21, 2022, newly-written policies will be the most affected and may experience major rate increases. During this time, "renewals" will have the option of being rated via either the existing legacy rating system or the new "Risk 2.0" rating, and choose the best scenario for them.  However, after April 21, 2022, all policies will transition to the new rating system.

This situation continues to evolve. For the latest details, keep in touch with your local flood insurance agent and FIRM.

More information available here at: New "Risk Rating 2.0"

Value of Having an Elevation Certificate

IMPORTANT UPDATE:  As of October 1, 2021, vast changes are underway with how FEMA's National Flood Insurance Program (NFIP) rates policies. 

Under FEMA's new policy rating program "Risk Rating 2.0," it's being promoted that ECs are no longer required to obtain or renew flood insurance policies. However, local rate comparisons by Fair Insurance Rates in Monroe (FIRM) show 82% of policy quotes accompanied by an EC receive lower rates. These are their findings:

  • $120 - $3,113 range of savings
  • $883 average annual savings--18% less than when rated without an EC) Pie chart showing 82% flood policies get lower rates submitting elevation certificates
    • 44 Comparisons
      • 36 saw a decrease in premium 
      • 8 saw no change in premium
      • 0 saw an increase in premium
  • By flood zone
    • X zone – 6 of 6 decrease in premium between $556 - $3,072
    • AE zone – 30 of 37 decrease in premium $120 - $3,113
    • VE zone – 1 of 1 no change in premium

Obtaining and Elevation Certificate

Flood Insurance Available to Owners & Renters

Flood insurance is available to all building owners and renters. The City of Key West participates in the National Flood Insurance Program (NFIP). With the City’s participation, NFIP makes federally backed flood insurance available for all buildings, whether they are in a floodplain or not. Flood insurance covers direct losses caused by surface flooding, including an ocean storm and local drainage problems. 

Coverage Types

The NFIP insures buildings, including mobile homes, with two types of coverage: structural and contents. Contents coverage may by purchased separately provided the contents are in an insurable building. Structural coverage is for:

  • Air-conditioning
  • Floors
  • Furnace
  • Insulation
  • Walls

Important Flood Insurance Facts

  • Flooding isn’t covered by homeowners insurance, a separate flood policy is required.
  • There is a 30-day waiting period between purchase and coverage becoming effective (with a few exceptions).
  • Flood insurance covers damage caused by rising water - building and contents coverage is provided in two separate policies, except when written as Preferred Risk. Coverage purchased as a requirement for getting a mortgage typically covers just the building, not the contents. 
  • Flood insurance pays up to $30,000 toward the cost of elevating a home if it was substantially damaged by the flood and is being required to elevate before being restored (view the Coverage D on the Dwelling form).