Discount on Flood Insurance Rates

As of October 1, 2020, most flood insurance policy holders in Key West will enjoy an even greater discount on their rates. The Federal Emergency Management Agency (FEMA) - which administers the National Flood Insurance Program (NFIP), approved the enhanced discount, which will benefit most of the nearly 8,000 policy holders within the city and collectively save policy holders $3 million annually. The discount increased from 15% to 25% for new policies and existing policies renewing after October 1, 2020. 

This discount is the result of several years of painstaking work, which included a major revamping of the building permitting and inspection process, so the City could demonstrate it’s exceeding the basic requirements necessary to participate in the flood insurance program and worthy of this increased discount for its citizens.

Community Rating System Discount

The City worked diligently with FEMA to bring the community into compliance with FEMA standards to make the City eligible to apply for discounted rates under the Community Rating System.  The first discount (15%) was awarded October 1, 2016 and upgraded to 25% October 1, 2020.

Local stakeholder groups, such Fair Insurance Rates for Monroe (FIRM) and the Key West Association of Realtors used their respective roles to help the City earn the 2,500 CRS points needed CRS Class 5 rating. 

Current Amount Paid for Flood Insurance Policies

There are currently 8,000 active flood insurance policies within the city, with an average annual cost of $1,510 per policy. Key West property owners pay $12 million annually for flood insurance coverage through the NFIP.


The average policy holder will likely save about $494, which collectively will save the community $3 million annually. 

This savings comes on the heels of the Key West Fire Department’s successful efforts to reduce fire insurance premiums by getting the City reclassified as a Class 1 community by the Insurance Services Office (ISO) , upon which fire insurance rates are based.

Flood Insurance Statistics

The CRS What-If chart from FEMA shows the flood insurance statistics for Key West, and opportunity for reduced flood insurance costs. Key West is advancing from a CRS Class 7 rating to a Class 5.

View more information about the FEMA’s CRS program.