FEMA Gives SW Florida a Few More Months on Flood Insurance Discounts

Communities in southwest Florida will continue to enjoy discounts on National Flood Insurance, at least for now, after federal authorities granted a temporary reprieve to punitive actions taken over inappropriate rebuilding in floodplains.

“The Village of Estero was notified July 19 that FEMA will maintain Estero’s Community Rating System (CRS) rating of 6 until at least April 1, 2025,” reads a bulletin posted by Estero officials after the announcement was made last week. “This means residents with policies issued under the National Flood Insurance Program (NFIP) will maintain the discount rate of 20% on their insurance premiums for the time being.”

Estero is one of five incorporated areas in Lee County, as well as unincorporated areas, that were at risk of losing its community rating discount. The Federal Emergency Management Agency set off alarm bells in March when it notified the communities that their discounts were to be downgraded because homes and businesses were allowed to rebuild in low-lying sites despite the fact that they had suffered more than 50% damage in Hurricane Ian flooding.

Since then, the county and cities have worked to show evidence that some rebuilding was properly permitted, in keeping with FEMA rules, according to news reports and local officials. Local insurance agents familiar with the process said that one community had attempted to show increased vigilance by requiring permits for work that normally does not need building permits, such as new carpets. That has led to delays in restoring some homes.

All issues with FEMA have not been resolved. FEMA said in a letter last week that the county and the towns and cities have four months to provide further information and correct deficiencies.

“FEMA determined unincorporated Lee County residents with policies issued under the NFIP will maintain the discount rate of 25% while the county and FEMA continue to work on a plan to address some continuing issues. That plan will be due Nov. 18,” reads a statement posted by Lee County government officials.

In its notice to Cape Coral, FEMA listed multiple issues the city of 216,000 needs to address:

• A lack of permits and records for development in the Special Flood Hazard Area.
• Only about 40% of permit package information was complete.
• Some 71 of 206 permit packages submitted did not include permits for structures that had sustained documented damage.

The city must submit a plan that includes timelines and steps the city will take to address all deficiencies, or it will face probation next spring and probable loss of all community rating discounts. Without the discounts, property owners could see premiums on flood insurance increase by a few hundred dollars per year, on average.

Photo: An undated shot of Cape Coral. (Adobe stock images).

Topics Florida Flood