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Citizens Insurance policyholders face flood insurance mandate

Flood policies can range from hundreds to thousands of dollars per year
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PORT ST. LUCIE, Fla. — Big changes are coming to Citizens Insurance — Florida's insurer of last resort.

Lauren Cool of Port St. Lucie remembers the sticker shock she experienced when she was shopping for homeowners insurance.

"I mean, for where we are, it's very expensive," Cool said while visiting a Martin County park.

Cool ended up with Citizens, where in time, she'll be required to add on flood insurance.

Lauren Cool is among the thousands of Florida residents who have their homeowners insurance with Citizens.
Lauren Cool is among the thousands of Florida residents who have their homeowners insurance with Citizens.

Kelly Johnson, with RV Johnson Insurance in Stuart, said the state-run insurer has about 1.2 million policies now, and starting next month, is requiring certain new policyholders to add flood insurance.

"If they have wind coverage on their Citizens' policy to purchase a flood policy, if they're in a special hazard area," Johnson said, "then, eventually over time, they're requiring all renewals, effective in 2027, to eventually purchase a flood policy."

Flood policies can range from hundreds to thousands of dollars a year. The average cost falls between $600 to $700 annually.

Kelly Johnson explains the changes that Citizens policyholders will need to be aware of starting in April.
Kelly Johnson explains the changes that Citizens policyholders will need to be aware of starting in April.

In an effort to reduce the future financial burden, many counties like Martin County undertake floodplain management efforts. That way, individual flood insurance premiums are reduced.

"Our (Community Rating System) rating reduced from a six to a five this year," Martin County Public Works Director Jim Gorton said.

Gorton said that number is from the National Flood Insurance Program, which looks at what the county is doing to prevent flooding.

Jim Gorton discusses the improvements being made in Martin County to reduce flood risks.
Jim Gorton discusses the improvements being made in Martin County to reduce flood risks.

Martin County has had serious issues with flooding in recent years, especially in 2020 in Hobe Heights where today many homes that repeatedly flooded were torn down. A large retention area was created to handle future heavy rain events.

"The rate for flood insurance for people in special flood hazard areas went from a 20% discount to a 25% discount," Gorton said. "That equates to about a $250,000 saving for our residents in Martin County."

As for any other advice on saving when getting insurance, Johnson said it's a difficult market right now, so you need to do your due diligence and work with your agent.