Florida’s Private Residential Flood Insurance Market

September 20, 2018

Brett Lingle and Carolyn Kousky

Florida homeowners are extremely vulnerable to flood damage, yet many of those at risk are uninsured. For the last fifty years, the federally-run National Flood Insurance Program (NFIP) has largely been homeowners’ only option for flood insurance. In just the last few years, however, a small private market has emerged and policymakers are increasingly interested in whether its expansion could increase the number of homeowners with flood insurance and whether it could offer more affordable coverage.

Drawing on our recent report, The Emerging Private Residential Flood Insurance Market in the United States, our newest issue brief describes the Florida market and the measures the state has taken to support its growth.

We find:

  • Florida has the largest private residential flood insurance market in the country, but the vast majority of flood policies are still written by the NFIP. Despite recent growth, the private sector accounts for only 3% of all policies in the state.
  • Florida has actively encouraged growth of the private market by implementing rules and regulations that make it easier for insurers to offer private flood policies.
  • Until 2025, insurers are allowed to file flood rates on an informational basis only, enabling them to adjust prices in response to new information. Insurers we spoke with said the freedom to set and change rates was influential in their decision to enter the admitted market.

For more details, see the full Issue Brief available here: Florida’s Private Residential Flood Insurance Market.

The complete report is also available here: The Emerging Private Residential Flood Insurance Market in the United States.

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